Oxis creditor sells collateral after issuing notice

By Devika Patel

Knoxville, Tenn., June 19 - Oxis International Inc. creditor Bristol Investment Fund, Ltd., a senior secured creditor and collateral agent, has foreclosed on some of Oxis' assets, the fund said in a press release.

Bristol Investment Fund participated in the auction and was the successful bidder for 111,025 Bio Check, Inc. common shares and 1,000 Oxis Therapeutics, Inc. capital shares.

The asset sale has been completed, and Bristol Investment Fund is now the owner of the assets.

Earlier on Thursday, Oxis said in a press release that Bristol Investment Fund intended to proceed with selling Oxis' collateral.

Thomas J. Fleming, the counsel to Bristol, sent a letter to Oxis on Wednesday in response to an 8-K Oxis filed with the Securities and Exchange Commission on Tuesday. The letter was included in Thursday's press release.

Fleming reiterated that Oxis has been in default on the notes for over a year and said that Oxis' "suggestion that Bristol is acting in a precipitous fashion is truly astounding."

Fleming continued in the letter, "Bristol has been more than patient in affording [Oxis] an opportunity to raise capital, sell assets or otherwise obtain funds to honor its debt obligations. Instead, the officers and directors have devoted the company's resources largely to advance personal goals at the expense of Bristol and other noteholders."

Fleming concluded the letter by saying Bristol would not delay in pursuing its rights under the notes.

Located in Foster City, Calif., Oxis develops clinical and research assays, diagnostics, nutriceutical and therapeutic products.

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