Digital health firm Babylon has filed for bankruptcy protection for two of its U.S. subsidiaries, as per filings in the U.S. Bankruptcy Court in Delaware. The company is opting for Chapter 7 relief, indicating its intention to liquidate assets rather than restructure. The filings, dated August 9, are for Babylon Inc. and Babylon Healthcare Inc.
The U.K.-based company, which went public in 2021 through a SPAC deal, has faced challenges securing financing for its operations. This liquidation follows the collapse of a planned business combination with Switzerland’s digital therapeutics firm MindMaze. Additionally, Babylon is also winding down its operations in Rwanda, impacting 2.8 million patients. As of the end of December 2022, Babylon reported a net loss of $221.4 million on a global revenue of $1.1 billion.