Troubled Premier Laser Systems Inc. said Tuesday that its negotiations to sell a division to a German firm and merge with that company have stalled.
Irvine-based Premier, which filed for bankruptcy protection in March and is shedding its assets, said it will seek another merger partner, as well as a buyer for its EyeSys division, a developer and supplier of corneal diagnostic systems.
Premier had announced a tentative agreement in October to sell the division and merge with ProLaser Ltd. in Dusseldorf.
Several other companies have expressed an interest in the division, which is expected to fetch at least $1 million, said Randy McDonald, managing director for the Magnum Group Inc., which Premier retained in May to sell its assets and seek a merger partner.
The company, which became a Wall Street favorite in 1997 after receiving approval from the Food and Drug Administration to market a laser that could be used directly on teeth to treat tooth decay, now has four employees.
The company's five board members resigned last month after their directors' insurance expired, McDonald said. The insurance shields directors from personal financial liability in lawsuits filed against them as Premier Laser board members.