Diomed files for Chapter 11, seeks sale to Biolitec

Diomed Holdings Inc. said Friday it, together with its wholly owned subsidiary, Diomed Inc., has filed a voluntary petition under Chapter 11 for bankruptcy protection.
The petition contemplates that Diomed will sell certain of its operating assets to Biolitec AG, a German-based manufacturer of medical lasers, optical fibers and other products. The move would enable Biolitec to continue to operate Diomed's business in the United States. Diomed develops and markets minimally invasive medical technologies, including a laser treatment for varicose veins.
Andover, Mass.-based Diomed (AMEX: DIO) said it has entered into a non-binding letter of intent with Biolitec for the sale of specified assets for a purchase price of between $6 and $7 million. Biolitec employs approximately 60 people its U.S. operations in East Longmeadow, Mass.

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