Tengion files for Chapter 7 bankruptcy

Regenerative medicine company Tengion Inc. (OTCQB:TNGN) filed for Chapter 7 bankruptcy in the U.S. Bankruptcy Court for the District of Delaware. The filing triggered a default under the terms of two private placements of senior convertible notes, on which Tengion owes $31.6 million in principal and interest.

On Sept. 30, the company had $5.7 million in cash and a nine-month operating loss of $14.1 million. In its 3Q14 earnings, Tengion said it expected to be able to fund operations through mid-December. ...