Bridge Diagnostics, LLC, a Southern California clinical diagnostics laboratory founded in April 2020, filed a Subchapter V chapter 11 case on March 29, 2024 in the U.S. Bankruptcy Court for the Central District of California (Case No. 8:24-bk-10803-TA, Judge Theodor C. Albert). The company scaled rapidly during the COVID-19 pandemic to over 150 employees, generating millions in revenue from high-demand COVID testing, then faced a post-pandemic reimbursement shock: a Medicare coverage discontinuation for PCR-based UTI testing (April 2022) eliminated reimbursement for millions in R&D investment, and insurers stopped paying on $10-15 million in outstanding CARES Act-backed COVID-era accounts receivable. The debtor obtained approval for up to $800,000 in postpetition financing from principal Jason Hansen at 5% annual interest, secured by priming liens on substantially all assets, maturing December 31, 2026. A second amended Subchapter V plan was confirmed via cramdown under 11 U.S.C. § 1191(b) on September 13, 2024, with Hansen's $6.0 million prepetition secured claim partially recharacterized as unsecured, and general unsecured creditors positioned to receive pro rata distributions over three years funded by accounts receivable collections and debtor disposable income.
