The Wall Street Journal reported Elizabeth Holmes, founder of blood testing firm Theranos, sent an email to shareholders informing them the company will formally dissolve and attempt to use its remaining cash to pay unsecured lenders.
According to the Journal, the dissolution process was precipitated by the company’s breach of a covenant governing a $65 million loan it received from Fortress Investment Group last year. The Journal added Fortress was entitled to foreclose upon the company’s assets if its cash fell beneath a certain threshold, according to terms of the loan.
