igital health company Babylon filed for bankruptcy protection for two of its U.S. subsidiaries last week, according to filings in U.S. Bankruptcy Court in Delaware. Babylon is seeking Chapter 7 relief, which means it plans to liquidate assets rather than attempt to restructure.
The filings, which are dated August 9, are for two related entities: Babylon Inc. and Babylon Healthcare Inc. Both entities list hundreds of creditors, however Babylon has indicated that only secured creditors, where the debt is backed by collateral, have a shot at getting paid. Babylon chief operating officer Paul-Henri Ferrand, who signed the filings, selected a checkbox that says: “After any administrative expenses are paid, no funds will be available for distribution to unsecured creditors.
Babylon CEO Ali Parsa and the Babylon press team did not respond to a request for comment. Babylon has at least three other incorporated in Delaware. A search of federal court filings did not locate any bankruptcy filings for these other entities. Ferrand’s Babylon email address bounced back when contacted by. The role of chief operating officer was among the titles Babylon had said would be eliminated in a WARN notice filed with the Texas Workforce Commission.last week that Babylon closed its headquarters on August 7, laid off U.S. employees and abruptly canceled patient appointments.