Bridge Diagnostics, LLC, a Southern California clinical diagnostics laboratory founded in 2020, filed a Subchapter V chapter 11 case in the U.S. Bankruptcy Court for the Central District of California on March 29, 2024 (Santa Ana division). Bankruptcy filings describe a company that scaled rapidly during COVID testing and then faced a post-pandemic revenue decline tied to coverage changes affecting a PCR-based UTI testing line and unpaid COVID-related receivables. Filings also describe workforce reductions and a strategic pivot toward pharmacogenomic testing. The court approved postpetition financing of up to $800,000 secured by a priming lien on substantially all assets and the court entered a Confirmation Order approving a second amended plan in September 2024.
U.S. Bankruptcy Court, Central District of California (Santa Ana Division)
Case Number
8:24-bk-10803
Judge
Hon. Theodor C. Albert
Petition Date
March 29, 2024
Restructuring Path
Subchapter V chapter 11 plan of reorganization
Confirmation Date
September 2024
Postpetition Financing
Up to $800,000 postpetition loan with priming lien; maturity December 31, 2026
Case Snapshot
Subchapter V Reorganization of a Clinical Diagnostics Laboratory
Facility. Bridge Diagnostics operated as a clinical medical laboratory in Irvine/Aliso Viejo, California. A facility design profile from LPA Design Studios describes a purpose-built diagnostics facility totaling 24,000 square feet, including 14,000 square feet of lab space and 10,000 square feet of office space, built as an expansion from a prior 6,500 square foot facility.
An NPI profile lists Bridge Diagnostics LLC as a "Clinical Medical Laboratory" with an NPI assigned in May 2020 and identifies Jason Hansen as the authorized official. A CLIA listing describes an independent lab certificate of accreditation for nonwaived testing under CLIA number 05D2184382.
Item
Publicly described details
Facility size
24,000 sq. ft. total; 14,000 lab; 10,000 office
NPI
1881215622 (Clinical Medical Laboratory)
CLIA
05D2184382 (Certificate of Accreditation; nonwaived testing)
A BBB profile for Bridge Diagnostics lists a company start date of April 1, 2020, a location in Irvine, and a B- rating, stating that the company was not accredited and that one complaint had been filed without a response.
Distress drivers. Bankruptcy filings describe the company as scaling rapidly during COVID testing and then pivoting back toward pre-pandemic testing lines. The filings describe a revenue decline tied to coverage changes affecting a PCR-based UTI testing product line and unpaid COVID-related receivables. The filings also describe workforce reductions and a strategic shift toward pharmacogenomic testing.
Cash collateral. Early in the case, the debtor filed a Cash Collateral Motion. Bridge subsequently sought additional postpetition financing rather than relying solely on cash collateral arrangements.
Postpetition financing. The Postpetition Loan Motion describes a loan facility of up to $800,000, with interim approval for $100,000, priced at 5% interest per annum compounded annually, and maturing on December 31, 2026. The filings describe the loan as being secured by a priming first-priority lien on substantially all assets (excluding avoidance actions).
Term
Reported financing terms
Maximum borrowing
$800,000 total (interim approval for $100,000)
Interest
5% per annum, compounded annually
Maturity
December 31, 2026
Collateral
priming first-priority lien on substantially all assets (excluding avoidance actions)
Postpetition loan terms (high level)
Plan structure. Bridge filed multiple iterations of a chapter 11 plan and ultimately proceeded on a Second Amended Plan confirmed in September 2024. The plan included a granular secured creditor matrix (Class 1(a) through 1(m)), a dedicated insurer-related class (Class 2 for Blue Cross of California and Anthem Blue Cross Life), and a general unsecured class (Class 3). A portion of a secured claim held by "Hansen" was recharacterized into general unsecured treatment, and certain equipment collateral was surrendered to BayCap, with any deficiency treated as general unsecured claims.
Class (high level)
Constituency
Treatment concepts described
Class 1(a)–1(m)
Secured creditors
Individualized treatment by creditor/collateral package
Class 2
Blue Cross of California; Anthem Blue Cross Life
Insurer-related claims grouped into a dedicated class
Class 3
General unsecured
Receives unsecured distributions; absorbs certain recharacterized and deficiency amounts
Plan class structure (high level)
Key professionals. A bankruptcy database listing identifies debtor counsel as Marshack Hays Wood LLP (David Wood, counsel of record). Public profiles identify Jason Hansen as founder and CEO, with prior experience founding Precision Diagnostics (founded in 2011) before founding Bridge Diagnostics in April 2020.
Role
Publicly identified name / firm
Debtor counsel
Marshack Hays Wood LLP (David Wood)
CEO / founder
Jason Hansen
Key people (public sources)
Timeline. Bridge filed in late March 2024, moved through early liquidity motions in April, filed an initial plan in late June, amended the plan in August, and reached confirmation in September.
When did Bridge Diagnostics file chapter 11, and was it a Subchapter V case?
Bridge Diagnostics filed chapter 11 on March 29, 2024 in the Central District of California, and the case has been described as a chapter 11 Subchapter V filing.
Where was the case filed and what is the case number?
The case is pending in the U.S. Bankruptcy Court for the Central District of California (Santa Ana division) under Case No. 8:24-bk-10803-TA.
What business did Bridge Diagnostics operate?
Bridge Diagnostics operated as a clinical diagnostics laboratory in the Irvine/Aliso Viejo area. Public records identify it as a clinical medical laboratory with an NPI assigned in 2020 and as a CLIA-accredited independent lab performing nonwaived testing.
What facility footprint did the company operate?
A facility design profile described a 24,000 square foot diagnostics facility with 14,000 square feet of lab space and 10,000 square feet of office space.
What factors did bankruptcy filings describe as driving distress?
Bankruptcy filings described a post-COVID revenue decline tied to testing mix changes, coverage changes affecting a PCR-based UTI testing line, unpaid COVID-related receivables, workforce reductions, and a pivot toward pharmacogenomic testing.
Did the debtor obtain postpetition financing and what were the key terms?
Bankruptcy filings describe approval of a postpetition loan of up to $800,000 (with interim approval for $100,000), priced at 5% interest compounded annually, maturing December 31, 2026, and secured by a priming lien on substantially all assets (excluding avoidance actions).
How did the confirmed plan classify and treat secured creditors and general unsecured claims?
The confirmed plan used multiple secured creditor classes (Class 1(a)–1(m)), a separate insurer-related class for Blue Cross of California and Anthem Blue Cross Life, and a general unsecured class. Filings describe treatment that included recharacterizing part of one secured claim into unsecured treatment and surrendering certain equipment to a secured creditor with any deficiency treated as unsecured.
When was the plan confirmed?
The Confirmation Order was entered in September 2024, reflecting plan confirmation under the Subchapter V chapter 11 framework.
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.