Medical device company Sicel Technologies on Tuesday filed to liquidate under Chapter 7 of the federal bankruptcy code after running out of cash.
The creditors identified in the Morrisville company's petition are five employees who say they are owed vacation pay and unreimbursed expenses. They claim they are owed between $1,452.12 and $6,115.
The company hasn't closed up shop yet and continues to sell its products to existing customers but is not manufacturing new products. Sicel has several hundred customers, primarily urologists, clinics and radiation oncologists.
Sicel sells a miniature wireless sensor that monitors the levels of radiation used to treat patients with breast and prostate cancer. The sensor enables physicians to make sure the correct amount of radiation is being delivered to the tumor, rather than to healthy tissue nearby.
Sicel, whose technology originated at N.C. State University, has been seeking about $20 million in funding for about two years. In addition to revenue generated from product sales, the company had raised $30 million in venture capital since being founded in 1999.
The company will likely liquidate its assets unless funding comes through. The bankruptcy filing does not include a list of corporate assets.
Sicel officials could not be reached for comment Tuesday. The company's phone service notifies callers: "We are having a significant cash-flow issue and have temporarily suspended operations."
Last week, the company laid off managers, and about three weeks ago, it furloughed more than 50 employees. Sicel had been looking for a new CEO since December, when Michael Riddle left the company after five years at the behest of the board of directors. Founder Charles Scarantino had been serving as acting CEO since Riddle's departure.
Staff writer John Murawski contributed to this report.
