Indaba Capital Management, Accelerate Diagnostics's largest secured creditor, credit bid for substantially all of the company's assets in its chapter 11 case and resold the acquired diagnostics technology to Bruker Corporation about three months after launching a new venture around the assets. The Tucson, Arizona-based company had spent nearly four decades developing rapid infectious disease diagnostics aimed at identifying pathogens and antibiotic resistance in hours rather than days, including the FDA-cleared Accelerate Pheno system, which reduced time to antimicrobial susceptibility test results by more than 40 hours compared to traditional culture-based methods and achieved 95.6% identification rates and 96.4% agreement with conventional testing in clinical studies. Accelerate never achieved profitable operations, and by December 2024 the company had accumulated $718.9 million in losses since inception, with revenue around $11-12 million annually while competitors introduced four new FDA-cleared rapid AST systems in a single six-month period. When Accelerate filed for chapter 11 bankruptcy on May 8, 2025, in the District of Delaware (Case No. 25-10837), it entered with a stalking horse bidder already in place: Indaba would credit bid $36.9 million to acquire the assets, a figure that grew to $41.95 million by the time the plan was confirmed 97 days after the petition date.
$20.0M ($12.5M new money + $7.5M convertible-note roll-up)
Confirmation Date
August 13, 2025
Effective Date
August 20, 2025
Case Snapshot
Accelerate Pheno System Development and Commercialization
Accelerate Diagnostics' origins trace back to 1987, when the company was founded to research microbiology solutions. For its first quarter-century, the company operated as Accelr8 Technology Corporation, trading on the NYSE while pursuing various research initiatives. In late 2012, the company began trading on the Nasdaq Capital Market under the new name Accelerate Diagnostics and ticker symbol AXDX.
The Accelerate Pheno system. The Accelerate Pheno system is a fully automated test system that uses automated fluorescence in situ hybridization technology combined with morphokinetic cellular analysis to provide rapid species identification and antimicrobial susceptibility testing results. The system provides results directly from positive blood cultures within approximately seven hours—faster than traditional methods. Pathogen identification occurs within two hours, with phenotypic resistance results available after an additional four to five hours.
A multicenter evaluation published in the Journal of Clinical Microbiology found that the Accelerate Pheno system correctly identified 95.6% of organisms, with performance sensitivity and specificity of 95.6% and 99.5%, respectively. Overall category agreement between the system and culture-based AST was 96.4%, with minor, major, and very major discrepancy rates of 1.4%, 2.3%, and 1.0%, respectively. The system accurately identified 14 common bacterial pathogens and two Candida species. Another study in the same journal documented that the Pheno system reduced time to identification results by 27.49 hours and time to AST results by 40.39 hours compared to culture-based methods.
Clinical context. Sepsis—a condition caused by the body's response to infection—kills approximately 270,000 Americans annually and remains one of the leading causes of hospital mortality. When a patient presents with suspected sepsis, clinicians initiate broad-spectrum antibiotics and later narrow therapy once the causative organism and its antibiotic susceptibilities are identified. Traditional culture-based methods require 48-72 hours for this identification, during which patients may receive antibiotics that are broader than necessary or ineffective against resistant organisms. The Accelerate Pheno system can provide susceptibility data within about seven hours.
Commercial performance. Despite the technological validation, Accelerate Diagnostics never achieved profitable operations or positive cash flows since inception. The company's accumulated deficit totaled $718.9 million as of December 31, 2024. Revenue remained flat: $11.2 million in 2020, $11.8 million in 2021, $12.1 million in 2023, and $11.7 million in 2024.
The 2021 financial results showed net sales of $11.8 million (up 5% from 2020) and a net loss of $77.7 million. That loss included $22.0 million in non-cash stock-based compensation expense and a $4.5 million non-cash inventory write-down. Net cash used was $47.2 million. By the time the company reported its 2024 results in early 2025, full-year revenue was $11.7 million (down from the prior year), the net loss was $50.0 million ($2.15 per share), cash and equivalents were $16.3 million, and working capital was negative $9.0 million.
Rival AST Systems and Prepetition Notes
The antimicrobial susceptibility testing market was growing. According to industry research from MarketsandMarkets, the AST market was expected to grow from $4.45 billion in 2024 to $5.68 billion by 2029, a compound annual growth rate of 5.0%. Prominent players included BioMérieux, Becton Dickinson, Thermo Fisher Scientific, and Bruker—companies with extensive distribution networks, existing customer relationships, and diversified product portfolios. Accelerate was a single-product company competing against larger incumbents.
Wave of new competition. According to MDC Associates' industry analysis, four novel AST technologies received FDA clearance over a six-month period. The new competitors included Affinity Biosensors' LifeScale AST, BioMérieux's VITEK REVEAL, Q-Linea's ASTar System, and Selux Diagnostics' platform. Each new test could obtain minimum inhibitory concentration (MIC) values in as little as four hours.
Financial position. With $28.6 million in assets against $84.6 million in liabilities as of December 31, 2024, liabilities exceeded assets by $56 million. The balance-sheet pressure followed an earlier out-of-court restructuring of $92 million in funded debt that converted certain secured debt to equity, extended existing-note maturities by 3.5 years, issued new notes, and committed $24 million of new operating capital. That prior transaction did not prevent the later liquidity shortfall and sale process described in the bankruptcy filings.
Prepetition sale process. Accelerate had been evaluating restructuring and sale alternatives since at least April 2024, when it engaged Perella Weinberg Partners LP to run a dual-track process. Between June 2024 and the petition date, the company approached more than 25 financing parties and signed six non-disclosure agreements without receiving an actionable third-party financing proposal. Between January and April 2025, management and its advisors separately met with nine potential bidders but did not find an actionable third-party buyer, leaving Indaba as the only party with an executable transaction by the petition date.
Prepetition debt instruments. Secured debt totaled approximately ~$87.6 million against $11.7 million in annual revenue, a ratio of roughly 7.5x, consisting of ~$16.6 million in Prepetition Super Priority Notes and ~$71 million in Prepetition Convertible Notes. According to the First Day Declaration, Convertible Notes holders received a stepped-up interest rate and a first lien on the debtors' assets under a June 9, 2023 exchange agreement, in which they swapped unsecured notes for the Convertible Notes and gave Accelerate a paid-in-kind interest feature and a maturity date extended by three and a half years. A separate intercreditor agreement, dated August 8, 2024 and entered alongside the Super Priority Notes issuance, subordinated the Convertible Notes' security interest to that of the Super Priority Notes. The Super Priority Notes originated when Accelerate, unable to secure third-party financing, negotiated directly with its secured noteholders and issued $15 million of super priority senior secured PIK notes on August 8, 2024, a prepetition exchange that grew to the ~$16.6 million balance outstanding at filing. The $71 million in convertible notes represented financing raised as the company pursued commercialization. Indaba Capital Management held a significant portion of the secured debt and later served as DIP lender and stalking horse bidder.
Stalking Horse Sale and DIP Financing
Filing and stalking horse arrangement. Accelerate Diagnostics filed chapter 11 petitions on May 8, 2025, in the U.S. Bankruptcy Court for the District of Delaware before Judge Karen B. Owens. Accelerate entered bankruptcy with a stalking horse bidder already in place and a DIP financing commitment that would fund the case through an expedited sale process. Indaba Capital Management, the San Francisco-based investment firm founded and led by Derek Schrier, served in multiple capacities: DIP lender, stalking horse bidder (through its affiliate Indaba Starling, LLC), and largest secured creditor. The initial stalking horse purchase price was a $36,879,241.41 credit bid consisting of Indaba's new-money DIP loans and DIP roll-up obligations, plus assumption of certain liabilities. By confirmation, plan materials reflected a $41.95 million credit bid amount, with a $21.95 million super priority PIK term loan claim as an underlying component, used to reduce the Prepetition Super Priority Notes Claims. The chapter 11 process was designed to facilitate the sale, confirm a liquidating plan, and exit bankruptcy within 90 days.
DIP financing structure. The court's Final DIP Order approved a facility of up to $20.0 million in aggregate: $12.5 million in new money and a $7.5 million roll-up of the Prepetition Convertible Notes, converting that existing secured debt into superpriority DIP claims. Indaba Capital Fund, LP served as initial DIP lender, Streeterville Capital LLC as an additional DIP lender, and Wilmington Savings Fund Society, FSB as administrative and collateral agent. The new-money draw schedule tied liquidity to case milestones:
Tranche
Amount
Trigger
Interim Draw
$3.5M
Entry of Interim DIP Order
Final Order Draw
$4.0M
Entry of Final DIP Order
Convertible Notes New Money
Up to $2.5M
Minimum Cash Balance compliance
Discretionary Draw
Up to $2.5M
Initial DIP Lender discretion
The court entered the Interim DIP Order on May 12, 2025, just four days after the petition date, providing immediate liquidity for operations. The Final DIP Order followed on June 5, 2025, completing the DIP approval process.
DIP covenants and milestones. The Final DIP Order required a segregated professional fee reserve funded weekly, preserved a carve-out for allowed professional fees, and imposed a $1.5 million minimum unrestricted cash balance covenant. Financing was tied to a compressed sale timeline: a bid deadline within 50 days of the petition date, an auction within five days after that, and a sale closing within 90 days of the petition date. The DIP agent and required lenders held credit-bid rights up to the full amount of the new-money and convertible-note roll-up obligations, while the prepetition Super Priority Notes agent separately retained credit-bid rights on its own adequate-protection and super-priority-note claims.
Sale process and bidding procedures. The Sale Motion was filed simultaneously with the petition on May 8, 2025, and the Bidding Procedures Order entered on June 5, 2025 established the framework for any competing bids. The order set a $500,000 initial overbid increment above the stalking horse bid plus expense reimbursement, capped expense reimbursement at $750,000 if another bidder closed, and preserved credit-bid rights up to a $50 million auction cap, with a July 3, 2025 post-auction objection deadline ahead of a July 15, 2025 sale hearing. No competing bidder emerged. The court entered the Sale Order on July 14, 2025, authorizing the sale to Indaba Starling, LLC, the Indaba-controlled acquisition vehicle approved as stalking horse bidder and buyer. The sale closed August 8, 2025 under an amended and restated asset purchase agreement that assigned the purchased technology and IP assets to AST Revolution LLC as a designated purchaser, with certain assumed liabilities going to a second Indaba-affiliated designee, Saguaro Ridge LLC.
Plan development. The plan evolved through multiple iterations as the sale process progressed: a First Amended Plan followed on June 9, 2025, interim disclosure statement approval came June 5, 2025, and a Second Amended Plan was filed July 10, 2025. The court entered the Confirmation Order on August 13, 2025, and the plan became effective August 20, 2025—97 days from petition to confirmation.
Plan classification and treatment. The liquidating plan classified claims in the standard hierarchy, and equity interests were cancelled with no distribution:
Class
Claim Type
Treatment
Unclassified
Administrative Claims
Paid in full
Unclassified
DIP Loan Claims
Paid in full
Unclassified
Priority Tax Claims
Paid in full
Class 1
Priority Non-Tax Claims
Per Plan
Class 2
Other Secured Claims
Collateral or value payment
Class 3
Prepetition Super Priority Notes Claims
Per Plan treatment
Class 4
Prepetition Convertible Notes Claims
Per Plan treatment
Class 5
General Unsecured Claims
Pro rata from remaining assets
Class 6
Existing Securities Law Claims
Per Plan treatment
Class 7
Interests (Equity)
Cancelled, no distribution
Class 8A
Intercompany Claims
Per Plan treatment
Class 8B
Intercompany Interests
Per Plan treatment
Liquidation trust. Following confirmation, Ankura Trust Company, LLC was appointed as Liquidation Trustee, with Young Conaway Stargatt & Taylor, LLP serving as trustee counsel. The trust's purpose is to administer remaining assets, resolve disputed claims, and make distributions to creditors.
Post-confirmation activities have included omnibus rejection of executory contracts, abandonment of certain property with limited value, and a series of stipulations with American Type Culture Collection extending the deadline to file administrative expense claims—eight separate agreed orders entered between September and December 2025.
Claims reconciliation into 2026. By February 2026, the trustee was reconciling roughly 180 claims—about 73 filed proofs of claim and 107 scheduled claims—and sought to extend the claims-objection deadline from February 17, 2026 to June 17, 2026, saying no creditor would be prejudiced because no distributions had been made in reliance on the earlier deadline. The court closed the separate Accelerate Diagnostics Texas, LLC case on March 23, 2026, waiving further post-confirmation reporting for that subsidiary and directing remaining reporting and claims objections to the lead Accelerate Diagnostics, Inc. case. On June 15, 2026, the court further extended the claims-objection deadline through October 15, 2026, following the trustee's motion describing ongoing reconciliation work. The claims agent certified no claims-register activity as of July 1, 2026, and the trustee's July 8 notice reported approximately 75 filed proofs of claim, identifying claims already satisfied, resolved, superseded, or otherwise reconciled and giving holders until July 22, 2026 to dispute the proposed treatment.
The treatment of general unsecured creditors (Class 5) under the liquidating plan depends on the recovery achieved from any remaining assets after satisfaction of administrative, priority, and secured claims. The securities law claims class (Class 6) covers existing securities law claims; recoveries, if any, would be made under the plan alongside general unsecured claims.
Post-Sale Outcome: AST Revolution and Bruker Acquisition
AST Revolution launch.AST Revolution, LLC officially launched in September 2025 following the court-approved acquisition of select assets from Accelerate Diagnostics. The new company acquired the Accelerate WAVE and Arc Systems and the associated intellectual property portfolio—the core technology developed over decades at Accelerate.
Leadership at AST Revolution came from Accelerate's technical team: Lawrence Mertz, formerly Chief Technology Officer of Accelerate Diagnostics, led the new company. Derek Schrier, Indaba Capital's founder, served as Chairman of the AST Revolution Management Committee. Indaba provided funding to support product development during the initial post-acquisition period.
Sale to Bruker. On November 24, 2025—approximately three months after AST Revolution's launch—Indaba Capital sold AST Revolution to Bruker Corporation. Financial terms were not disclosed.
Bruker Corporation (Nasdaq: BRKR) is a provider of advanced scientific instruments and analytical solutions for life sciences and materials research. The acquisition expanded Bruker's diagnostics portfolio.
Post-confirmation IP dispute. Following the sale's closing, a dispute emerged between imec vzw—the Interuniversity Microelectronics Centre, a Belgian nanoelectronics research institution with an intellectual property portfolio—and AST Revolution over which IP rights were transferred in the sale versus retained by imec. In September 2025, imec filed a motion for clarification of the Sale Order. AST Revolution objected in late September, and imec filed a reply brief in December 2025. The dispute centers on the interpretation of Sale Order provisions regarding intellectual property interests.
The litigation remains pending in the Liquidation Trust administration, with Ankura Trust Company managing the estate's response while AST Revolution (now under Bruker's ownership) defends its position on the scope of acquired IP rights.
Professional Retentions and Perella's Sale Fee
Accelerate Diagnostics retained restructuring professionals for the chapter 11 case. Fried, Frank, Harris, Shriver & Jacobson LLP served as lead counsel, with Morris, Nichols, Arsht & Tunnell LLP as Delaware counsel. SOLIC Capital Advisors, LLC provided financial advisory services, while Perella Weinberg Partners LP acted as investment banker. Stretto, Inc. served as claims and noticing agent.
Final professional fee applications were filed in fall 2025, with Fried Frank submitting its Fourth Monthly and Final Application in late September, Morris Nichols and Perella Weinberg filing final applications in October, and Stretto filing its final application the same month. Perella Weinberg Partners earned a $1,750,000 Sale Transaction Fee upon consummation of the sale.
Key Timeline
Date
Event
1987
Company founded as microbiology research company
December 26, 2012
Begins trading on Nasdaq as Accelerate Diagnostics (AXDX)
2018
Accelerate Pheno system clinical validation published
2021
Net loss: $77.7 million; net sales: $11.8 million
August 2024
Four rival AST solutions receive FDA clearance
December 31, 2024
Accumulated deficit reaches $718.9 million
Q1 2025
2024 financial results: $11.7M revenue, $50M net loss
May 8, 2025
chapter 11 petition filed
May 8, 2025
DIP and Sale motions filed
May 12, 2025
Interim DIP Order
May 16, 2025
Initial Combined Plan/DS filed
June 5, 2025
Final DIP Order; Bidding Procedures Order
July 10, 2025
Second Amended Plan filed
July 14, 2025
Sale Order entered (buyer: Indaba Starling, LLC)
August 13, 2025
Confirmation Order entered
August 20, 2025
Plan Effective Date
September 2025
AST Revolution officially launches
September 16, 2025
imec vzw files motion re: IP dispute
November 24, 2025
Bruker Corporation acquires AST Revolution
February 18, 2026
Trustee moves to extend claims-objection deadline to June 17, 2026
March 23, 2026
Court closes Accelerate Diagnostics Texas, LLC subsidiary case
June 15, 2026
Court further extends claims-objection deadline to October 15, 2026
July 1-8, 2026
Frequently Asked Questions
What was Accelerate Diagnostics?
Accelerate Diagnostics was a Tucson, Arizona-based medical diagnostics company focused on rapid pathogen identification and antimicrobial susceptibility testing (AST). Its flagship Accelerate Pheno system could provide results in approximately seven hours—more than 40 hours faster than traditional culture-based methods. The company was founded in 1987 and relaunched in 2012 to commercialize its diagnostics platform.
Why did Accelerate Diagnostics file for bankruptcy?
The company accumulated $718.9 million in losses since inception and never achieved profitable operations or positive cash flows. Despite clinical validation, revenue remained flat around $11-12 million annually while the company faced competition from four new FDA-cleared AST systems that entered the market in 2024. With assets of $28.6 million against liabilities of $84.6 million, liabilities exceeded assets.
Who acquired Accelerate Diagnostics' assets?
Indaba Starling, LLC, an Indaba Capital Management acquisition vehicle, was approved as stalking horse bidder and buyer under the Sale Order. At the August 8, 2025 closing, the amended and restated asset purchase agreement assigned the purchased technology and intellectual property to AST Revolution LLC as designated purchaser. Indaba served as both the DIP lender and stalking horse bidder, using its secured debt position to acquire the company's core technology and intellectual property.
What was the credit bid structure?
The initial stalking horse bid was a $36,879,241.41 credit bid of Indaba's DIP loans and DIP roll-up obligations. The final DIP facility approved by the court totaled $20.0 million: $12.5 million in new money and a $7.5 million roll-up of the Prepetition Convertible Notes into superpriority DIP claims. By plan confirmation, the credit bid amount used to reduce Indaba's Prepetition Super Priority Notes Claims had grown to $41.95 million, which included a $21.95 million super priority PIK term loan claim as an underlying component.
What happened after the sale closed?
AST Revolution launched in September 2025 under the leadership of Lawrence Mertz, former Chief Technology Officer of Accelerate Diagnostics. About three months later (November 2025), Indaba sold AST Revolution to Bruker Corporation, a provider of scientific instruments and analytical solutions.
Did shareholders receive anything?
No. Class 7 equity interests were cancelled with no distribution under the liquidating plan. With $718.9 million in accumulated losses, liabilities exceeding assets by more than $55 million, and secured creditors credit bidding their debt, there was no residual value for equity holders.
How long did the bankruptcy take?
Only 97 days elapsed from the petition date (May 8, 2025) to confirmation (August 13, 2025). The effective date followed one week later on August 20, 2025.
What is the status of the imec vzw dispute?
Belgian research institution imec vzw filed a motion to interpret the Sale Order regarding intellectual property rights in September 2025. AST Revolution objected, and the litigation remains pending in the Liquidation Trust administration. The dispute centers on which IP interests were transferred to AST Revolution versus retained by imec.
Who is the Liquidation Trustee?
Ankura Trust Company, LLC serves as Liquidation Trustee, with Young Conaway Stargatt & Taylor, LLP as counsel. The trustee is administering remaining assets, resolving disputed claims, and making distributions to creditors.
What was Perella Weinberg's role and fee?
Perella Weinberg Partners LP served as investment banker, advising on the sale of substantially all assets. The firm earned a $1,750,000 Sale Transaction Fee upon consummation of the sale to Indaba Starling, LLC.
Who is the claims agent for Accelerate Diagnostics?
Stretto, Inc. serves as the claims and noticing agent under a retention order the court entered May 12, 2025.
For more bankruptcy news and restructuring analysis, visit the ElevenFlo blog.
Sources
approached more than 25 financing parties /documents/c1c16325-621b-4fee-9881-03dc823487ad/
First Day Declaration /documents/5670eed9-e876-4207-9bbf-dd6183897a15/
$1,750,000 Sale Transaction Fee /documents/663f7668-03f3-4d83-84cc-406aa316fad6/
retention order /documents/6366f861-6dd9-46d4-a9a5-be166f9588b8/
Bruker Corporation https://www.businesswire.com/news/home/20251124720982/en/Indaba-Capital-Announces-Sale-of-AST-Revolution-to-Bruker
filed for chapter 11 bankruptcy https://www.prnewswire.com/news-releases/accelerate-diagnostics-files-for-chapter-11-protection-and-agrees-to-terms-to-sell-substantially-all-assets-302450047.html
began trading on the Nasdaq Capital Market https://www.nasdaqtrader.com/TraderNews.aspx?id=ETA2012-58
Accelerate Pheno system https://acceleratediagnostics.com/products/accelerate-pheno-system/
multicenter evaluation published in the Journal of Clinical Microbiology https://journals.asm.org/doi/10.1128/jcm.01329-17
study in the same journal https://journals.asm.org/doi/10.1128/jcm.01166-17
never achieved profitable operations or positive cash flows https://www.360dx.com/business-news/accelerate-diagnostics-bankruptcy-comes-after-years-difficulty
reported its 2024 results https://www.prnewswire.com/news-releases/accelerate-diagnostics-reports-fourth-quarter-and-full-year-2024-financial-results-302407788.html
industry research from MarketsandMarkets https://www.marketsandmarkets.com/PressReleases/antimicrobial-susceptibility-testing.asp
MDC Associates' industry analysis https://www.mdcassoc.com/four-new-rapid-antimicrobial-susceptibility-test-solutions-hit-the-market/
out-of-court restructuring of $92 million in funded debt https://www.sidley.com/en/newslanding/newsannouncements/2023/06/sidley-advises-accelerate-diagnostics-in-successful-restructuring
AST Revolution, LLC officially launched in September 2025 https://investor.wedbush.com/wedbush/article/bizwire-2025-9-16-ast-revolution-llc-launches-following-acquisition-of-accelerate-diagnostics-assets
This article was researched and written with AI assistance, using court filings, public records, and news sources. AI-generated content can contain errors. Verify all information against primary sources before relying on it. This is not legal or financial advice. See the disclaimer.