UPDATE 1-GlycoGenesys files for Chapter 11, says CEO resigns
Fri Feb 3, 2006 10:24 AM ET
(Adds details, stock movement)
Feb 3 (Reuters) - GlycoGenesys Inc. (GLGS.O: Quote, Profile, Research) on Friday said it and its subsidiaries have filed for bankruptcy under Chapter 11, cut over half its work force, and announced the resignation of Chief Executive Bradley Carver.
The biotechnology company filed for protection from creditors under the U.S. Bankruptcy Code in the Bankruptcy Court for the District of Massachusetts.
The company said in a statement it will pursue strategic alternatives, including a sale of the company.
It also intends to significantly reduce and contain monthly expenses and maintain its multiple myeloma clinical trial.
GlycoGenesys named Chief Financial Officer John Burns to the additional post of interim chairman and Frederick Pierce, its vice president of business development, to the additional post of interim CEO.
The company's shares fell 59.53 percent to $0.17 in morning trade on the Nasdaq. (Reporting by Nupur Sen in Bangalore)
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