Bridge Diagnostics: Subchapter V Plan Confirmed by Cramdown

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.

Debtor	Bridge Diagnostics, LLC
Court	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

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)

One growth database estimated revenue of $10.8 million and 50 employees (down from 97 the prior year). Other directories list wider ranges (e.g., 51–200 or 100–200 employees) and describe the company as operating in hospitals and healthcare or diagnostic 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.

The LinkedIn profile describes a focus on pharmacogenomics and "precision medicine data," framing the company's aim as bridging diagnostics and therapeutics. A company directory similarly describes infectious diseases and women's health alongside pharmacogenomics.

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)

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

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

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.

Date	Case milestone (high level)
March 29, 2024	chapter 11 Subchapter V petition filed
April 2024	cash collateral motion filed
April 2024	postpetition loan motion filed
June 24, 2024	initial chapter 11 plan filed
August 6, 2024	first amended plan filed
September 2024	second amended plan filed and confirmed

Frequently Asked Questions

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.

For more chapter 11 case coverage, visit the ElevenFlo bankruptcy blog.