CDEX Inc. Files for Chapter 11
Published: Feb 13, 2012
TUCSON, AZ--(Marketwire - February 10, 2012) - CDEX Inc. (OTCBB: CEXI) today announced that to achieve a debt structure that would allow the Company to continue to develop its leading edge products in the healthcare markets with the ValiMed G4 medication safety system and in the security market with its ID2 Meth Scanner and Pocket ID2 Meth Scanner it has retained the law firm of Eric Slocum Sparks, P.C. to assist in the financial restructuring through the voluntary filing of a Chapter 11 reorganization in the United States Bankruptcy Court for the District of Arizona. During the restructuring, the Company intends to continue operating as normal, without interruption.
The Company's Board of Directors determined that Chapter 11 reorganization provides the most effective and efficient means to restructure with minimal impact on the business, and is in the best interest of the Company, its stakeholders and customers. "Although the Company has worked closely with its noteholders and other creditors and constituents over the past year, which led to the reduction of certain obligations, the Company needs to complete its comprehensive restructuring due to its current inability to negotiate restructuring terms with all noteholders," said Jeffrey Brumfield, Chairman and Chief Executive Officer of CDEX.
CDEX intends to file motions with the Court to ensure the Company's ability to continue its normal operations, including the ability to continue the development, sale and service of all of its products. The Company anticipates receiving approval from the Court within the next several days. "All forms of debt incurred prior to the commencement of the Company's Chapter 11 case that have not been paid is intended to be resolved through the Company's Plan of Reorganization," said Brumfield.
"Throughout this restructuring process, we are committed to working as quickly and efficiently as possible to appropriately restructure CDEX so that it can emerge from Chapter 11 as a strong company, well-positioned to compete effectively in the marketplace," continued Brumfield.
CDEX Inc. (CDEX) develops manufactures and distributes products for the healthcare and security markets. The company focuses its resources on marketing and improving real-time chemical detection products using patented technologies. CDEX creates reference signatures of substances of interest, such as selected narcotics, explosive compounds and medicines. CDEX primary area of focus is on products in the healthcare market and security markets. Its Healthcare Market line includes ValiMed™ Medication Validation System (MVS) product line, which includes validation of substances, training and quality assurance. Its Security Market includes the ID2 Product Line, which comprise real time detection of specified illegal drugs in a portable handheld device.