Bankrupt Fischer sells off remaining businesses

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Fischer Imaging Corp. announced Monday it has reached an agreement to sell its RE &S business, which includes EP/SPX, VersaRad and Bloom, to Byers Peak Inc, a medical contract manufacturing based in Denver. Byers Peak is buying Fischer's radiology, electrophysiology and surgery products business lines.
           
In another development yesterday the company revealed that it has filed for Chapter 11 bankruptcy protection with the Securities and Exchange Commission. Fischer said in its filing that the decision was based on the desire "to avoid the expense and time delay involved in securing stockholder approval and in light of Fischer's deteriorating financial position," the Denver Business Journal reports.
           
The deal with Byers Peak will now be handled by a bankruptcy court, the company said, and will likely be closed in a matter of two months, the Journal reports.
           
Fischer inked its deal with Byers Peak on Monday with the assets changing hands for a total of $260,000, with an additional $80,000, depending on the number of Bloom units sold by Byers during the year after the closing, Fischer said.           
           
Upon the close of the sale, Fischer plans to convert the Chapter 11 reorganization filing into a Chapter 7 liquidation, the Journal reports.
           
Fischer will continue to meet its RE &S service and warranty obligations until the completion of the sale by utilizing the services of Byers Peak through a manufacturing services agreement and other contractors, the company said.
           
Last year Fischer began selling off its product lines, starting with its mammography business to Hologic — which was eventually sold to Siemens to settled an FTC dispute — as well as closing its European operations.