Form 8-K for ADDISON DAVIS DIAGNOSTICS
Bankruptcy or Receivership, Financial Statements and Exhibits
Item 1.03 Bankruptcy or Receivership.
As previously disclosed by Addison-Davis Diagnostics, Inc. (the "Company") in its periodic filings with the Securities and Exchange Commission, on January 5, 2005, Steven H. Reder ("Reder"), a former officer and director of the Company, filed a lawsuit against the Company in the Superior Court of the State of California for the County of Los Angeles (the "Court") entitled Steven Reder vs. QT5, Inc., a Delaware corporation, now known as Addison-Davis Diagnostics, Inc., a Delaware corporation Case No. BC 326875, alleging breach of his employment agreement, wrongful discharge, libel and breach of a certain promissory note (the "Action"). On September 15, 2006, the Court announced that it would rule in favor of Mr. Reder and tentatively awarded damages in the amount of $1,926,950 to Mr. Reder by the Company. No judgment has been entered by the Court and as a result of the automatic stay imposed pursuant to 11 U.S.C. Section 362(a) as a result of the filing of the Company Bankruptcy Petition (as defined below) on October 5, 2006, any further action in the Action is stayed, including the submission of and the entry of a judgment.
On October 5, 2006, the Company, filed a voluntary bankruptcy case under Chapter 11 of the United States Bankruptcy Code (the "Company Bankruptcy Petition"). The Company Bankruptcy Petition was filed in the United States Bankruptcy Court for the Central District of California, San Fernando Valley Division, and is designated as case number SV 06-11790 MT. The date jurisdiction was assumed is October 5, 2006. As this is a Chapter 11 case, the Company has been and remains the Debtor in Possession and as such has the rights and duties of a trustee as of the date of the October 5, 2006 case commencement.