The filing comes shortly after a planned combination Babylon’s core operating subsidiaries with MindMaze, digital neurotherapy company, collapsed. Chapter 7 bankruptcy liquidates a company’s assets, while Chapter 11 allows companies to continue to operate under a reorganization plan rather than restructure operations.
Both Babylon subsidiaries list hundreds of creditors with liabilities between $100 million and $500 million, according to the filing signed by COO Paul-Henri Ferrand. After administrative expenses are paid, only secured creditors — where the debt is backed by collateral — will be able to get paid.
Earlier this month, Babylon closed its Austin, Texas, headquarters, laid off 94 employees and abruptly canceled patient appointments.
The company reported a $63.2 million net loss (-20.3 percent net loss margin) in the first quarter, compared to a $29.1 million net loss (-10.9 percent net loss margin) for the same period in 2022. Net income for the period included a $78.8 million gain primarily related to Babylon going public via a blank-check company in the fall of 2021.
A meeting of Babylon’s creditors is scheduled for Sept. 12, according to the filing.
Babylon did not respond to Becker’s request for comment.
Becker’s 3rd Annual Fall Chief Pharmacy Officer Summit is the top tier event that the people leading the future of pharmacy convene. This 3-day event is built specifically for Chief Pharmacy Officers and senior pharmacy leaders. The sessions examine the workforce, financial and clinical priorities shaping pharmacy today. Becker’s is where candid discussions flourish and new ideas thrive. Becker's 3rd Annual Fall Chief Pharmacy Officer Summit
