Melinta Therapeutics, an antibiotics maker based in Morristown, N.J., filed for Chapter 11 bankruptcy Dec. 27.
The drugmaker has reached a debt-for-equity exchange with healthcare investment firm Deerfield Management Co.
Under the agreement, the investment firm will acquire the company and wipe out $140 million in debt.
In the bankruptcy petition, Melinta listed about $500 million in assets and up to $500 million in liabilities, according to Bloomberg.
The drugmaker plans to operate normally through the bankruptcy process.
The company, founded in 2000, sells drugs that treat methicillin-resistant staphylococcus aureus, urinary tract and other bacterial infections.
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