Echo Therapeutics Engages PwC To Explore Financial And Strategic Alternatives

(RTTNews) - Echo Therapeutics Inc. (ECTE), a medical device company, announced that it has retained PricewaterhouseCoopers LLP's Restructuring and Recovery Services Practice or PwC as a financial and restructuring consultant to assist the Company in exploring financial and strategic alternatives that could sufficiently address its liquidity needs and allow it to resume operations.

Such financial and strategic alternatives could include, but are not limited to, a sale of intellectual property and other assets, a merger, other business combination, a capital transaction and/or a voluntary petition for reorganization or liquidation pursuant to the U.S. Bankruptcy Code.

On September 23, 2014, Echo announced that it had suspended its product development, research, manufacturing and clinical programs and operations to conserve its liquidity and capital resources. The workforce reduction due to the suspension of operations comprised approximately 70% of Echo's workforce. Any resumption of operations would be dependent on Echo's ability to identify a strategic or financial alternative that would provide Echo with committed and sufficient third-party funding.

If Echo is unable to identify an acceptable financial or strategic alternative that sufficiently addresses Echo's liquidity needs, Echo warned that it could be forced to file for protection under the U.S. Bankruptcy Code.

Echo noted that it currently does not intend to make any further public announcement regarding its review of possible financial and strategic alternatives until this evaluation process has been completed.