Cork-Based Medtech Company PMD Device Solutions Files for Bankruptcy
Cork-based medical device company, PMD Device Solutions, has filed for bankruptcy after a review revealed its inability to meet short-term financial obligations. The company, which specializes in respiratory monitoring solutions for both hospitals and home care settings, cited delayed payments from a major public sector client and the subsequent rejection of a payment plan by tax authorities as key contributing factors to its financial distress.
Swedish Parent Company Also Files for Bankruptcy
The Irish subsidiary operates under the Swedish parent company, PMD Device Solutions AB. This Swedish entity also filed for bankruptcy in the Stockholm District Court on December 22nd. The dual filings mark a sudden and unfortunate end to a company that only recently underwent a major restructuring.
Recent Acquisition and Financial Challenges
In January 2024, Swedish biotechnology firm Promore Pharma completed a reverse acquisition of PMD Solutions. The deal saw Promore purchase all shares in PMD for approximately €11 million, paid in newly-issued Promore shares. This acquisition led to a name change for Promore Pharma to PMD Device Solutions, with the Cork firm holding 97.7% of the shares in the newly formed entity.
However, the Irish subsidiary’s ability to meet its short-term liquidity requirements was hampered by delayed payments from a major public sector client. Despite this, the company attempted to secure alternative financing options. Unfortunately, discussions with critical creditors did not yield a viable solution.
Lasting Impact and CEO Statements
Without access to short-term liquidity, the Irish subsidiary was unable to meet critical obligations, including payroll, effectively halting operations. This directly impacted the parent company’s ability to continue as a going concern.
In a statement released to the public, Myles Murray, CEO and founder of PMD Solutions, expressed his deep regret over the situation. “Despite exhaustive efforts to secure short-term liquidity, we have been unable to overcome the financial challenges facing PMD Device Solutions,” he stated. “This situation has left us no choice but to proceed with coordinated bankruptcy filings for both the parent company in Sweden and our subsidiary in Ireland.” He added that the company remains committed to handling the bankruptcy process with transparency and in accordance with all regulations to protect the interests of its stakeholders.
Stay Informed on Developments
The bankruptcy filings mark a significant development for PMD Device Solutions and its stakeholders. It remains to be seen what impact this will have on the company’s employees, customers, and suppliers. We will continue to follow this story and provide updates as they become available.
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