David Taylor, the Theranos general counsel who took over as CEO after the disgraced Elizabeth Holmes finally resigned in June, wrote to the company’s stockholders to say all efforts to sell the operation had failed. “We are now out of time,” Taylor wrote. “Despite our careful cash management, we are in default under the Fortress credit facility.”

The Fortress Investment Group loaned $65 million to Theranos last year, with one condition being that Theranos maintain a cash level that has now been breached—hence the dissolution process that will play out over the coming months.

Theranos’s other, unsecured creditors are owed at least $60 million, and the company is trying to negotiate a deal with Fortress that would see those creditors get the $5 million in cash that Theranos still holds. In exchange, Fortress would get Theranos’s patents.