Orexigen Follows Through On Warning It May Have To Liquidate

Orexigen Therapeutics Inc. was the most successful among a group of three obesity-focused companies that won approval for a prescription weight-loss drug in recent years, but now the firm is making good on a warning that it might have to liquidate its assets to meet debt holders' requirements.

San Diego-based Orexigen said on March 12 that it has support from a controlling number of senior secured note holders to initiate Chapter 11 bankruptcy proceedings that will allow for an orderly sale of the company's assets, which could be completed in early July