Troubled molecular imaging company Gamma Medica said Thursday that a California bankruptcy judge approved its $1.5 million debtor-in-possession financing plan as part of its Chapter 11 proceedings.

The company said the financing, approved by Judge Victoria Kaufman of the U.S. Bankruptcy Court for the Central District of California, buys them time to sell off assets or reorganize.

"We plan on being sure our tools are in the hands of researchers and radiologists working in women's imaging," Jim Calandra, Gamma Medica's CEO and managing member of Birch Hill Partners LLC., a consulting firm, said in a statement.

The company said it also hired investment bank CRS Capstone LLC to advise on the sale or restructuring of one or more of its divisions.

Gamma Medica, which makes LumaGem, a molecular imaging system to detect breast cancer, filed a voluntary petition for Chapter 11 protection in late August. The company said it has installed around 20 systems at clinical research sites worldwide.

Gamma Medica also makes pre-clinical imaging systems for small animal research.

Calandra was appointed as CEO in March, taking over for co-founder Bradley E. Patt after the board of directors began a reorganization of the firm in the spring, a company spokeswoman told DOTmed News.

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