Cork-based medical devices firm declares bankruptcy
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The board of Cork-based PMD Device Solutions has filed for bankruptcy following a review of the company’s financial position which found that it could not resolve its short-term liquidity requirements rendering it unable to meet critical obligations.
PMD Device Solutions develops and sells medical products for respiratory monitoring in both the hospital acute monitoring sector and the remote monitoring home care sector.
The Cork-based operations are a subsidiary of the Swedish company PMD Device Solutions AB which also filed for bankruptcy in the Stockholm District Court on December 22.
In January 2024, Swedish biotechnology firm Promore Pharma completed the reverse acquisition of PMD Solutions. The deal saw Promore purchase all shares in PMD for approximately €11m, which was paid by newly-issued shares in the Stockholm-based firm.
Following the acquisition, the company changed its name from Promore Pharma to PMD Device Solutions. The deal saw the Cork firm hold 97.7% of the shares in Promore.
In the bankruptcy announcement, the board said a number of key factors contributed to the decision to declare bankruptcy which affected both the Swedish parent company and its Irish subsidiary.
One issue was the Irish subsidiary being prevented from resolving its intended short-term liquidity requirement which stems from delayed payments from a major public sector client and the subsequent decision of tax authorities not to approve a payment plan and release of revenues that would allow operations to continue in a sustainable way.
“After discussions with critical creditors, no other solution has been made available to the company,” the announcement said.
Without access to short-term liquidity, the Irish subsidiary has been unable to meet critical obligations, including payroll, effectively halting operations. This has directly impacted the parent company's ability to continue as a going concern.
Chief executive of the company and founder of PMD Solutions Myles Murray said despite “exhaustive efforts” to secure short-term liquidity “we have been unable to overcome the financial challenges facing PMD Device Solutions”.
“This situation has left us no choice but to proceed with co-ordinated bankruptcy filings for both the parent company in Sweden and our subsidiary in Ireland.”
"While this is a deeply unfortunate outcome, we are committed to handling this process with the utmost transparency and in accordance with all applicable regulations to protect the interests of our stakeholders,” he added.
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