AtheroGenics Converts Ch. 7 Bankruptcy Into Ch. 11

Law360, New York (October 7, 2008, 12:00 AM EDT) -- Blaming a “substantial debt burden” that has threatened the development of a key diabetes drug, pharmaceutical company AtheroGenics Inc. asked a court on Monday to convert an involuntary Chapter 7 petition against it into a Chapter 11 bankruptcy.

AtheroGenics, which develops drugs to treat chronic inflammatory diseases such as diabetes and coronary heart disease, said in a statement that during the bankruptcy proceeding, it plans to sell off either the entire company or its key assets.

Proceeds from the transactions will be used to pay creditors...
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