Israeli medical device maker Art Medical seeks creditor protection with debts of about $15 million

In depth

Art Medical, which operates in the digital medical device sector, has run up debts of about $15 million. The company, founded in 2008, developed a system for managing nutrition for ventilated patients in intensive care, and has raised about $100 million since its founding.

After the FDA rejected its application for regulatory classification, investors stopped funding and the company failed to find additional funding or a buyer. Art Medical employs 53 workers and reports debts of $15 million against no tangible assets.

The company is asking the court for a freeze of proceedings and the appointment of a trustee, to allow its operations to continue and to explore selling it. Among its shareholders was the late businessman Natan Milikovsky, a cousin of Prime Minister Benjamin Netanyahu, and his daughter Brina Milikovsky serves as a director of the company.