Theranos Set to Dissolve As Company Defaults On Fortress Loan

Taylor said the investment bank with which Theranos was working reached out to more than 80 potential buyers, but none were interested.

The biotech company, which was once valued at $9 billion, built its reputation on the claim that it had come up with a cheaper, more efficient alternative to traditional medical tests.

It is the latest twist in one of the most dramatic rise-and-fall stories United States business has ever seen and comes three months after Elizabeth Holmes, who founded the company at the age of 19, was charged with fraud along with Sunny Balwani, her former lover and the company's former chief operating officer.

It agreed to pay $US4.65 million as part of a fraud settlement brought by more than 175,000 consumers in Arizona who purchased Theranos tests at its pilot retail locations.

Theranos will seek to pay unsecured creditors its remaining cash in coming months, the email said.

She carefully crafted her image as well, wearing nearly entirely black turtleneck sweaters that earned her the moniker in Silicon Valley as 'the next Steve Jobs'. "We are now out of time", Taylor wrote. Theranos was founded in 2003 by Holmes when she was only 19.

Meghan and Harry Visit Sick Children at WellChild Awards
Markle fans know that the former Suits star is an avid dog-lover and had two pups of her own, Guy and lab/shepherd mix Bogart. The royal couple met four-year-old Mckenzie Brackley at the WellChild Awards .

But prosecutors allege that Holmes and Balwani deliberately misled investors, policymakers and the public about the accuracy of Theranos' blood-testing technologies going back to at least 2013.

The SEC also alleged that claims the company would generate more than $100 million in revenue in 2014 were false, as it generated a little more than $100,000.

But an investigation by The Wall Street Journal two years ago found that Theranos' technology was inaccurate at best, and that the company was using routine blood-testing equipment for the vast majority of its tests. At one time, Theranos was worth more than $10 billion and Holmes the youngest self-made female billionaire.

The Wall Street Journal began investigating and published a series of exposes starting from October 2015.

The downfall of Holmes, who settled with the Securities and Exchange Commission in March over fraud charges it announced against her, has hastened the collapse of her company.

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