IO Biotech Inc. (NASDAQ: IOBT) filed for Chapter 7 bankruptcy on March 31, 2026, and ceased operations after considering strategic alternatives, according to a company filing.

The biotechnology company filed a voluntary petition for relief in the U.S. Bankruptcy Court for the District of Delaware. A Chapter 7 trustee will be appointed by the court to assume control over the company's assets and liabilities, removing authority from the board of directors and officers.

The company's assets will be liquidated and claims paid according to priorities specified in the Bankruptcy Code. The filing states that common stockholders are unlikely to receive any payment or distribution from the bankruptcy proceedings.

The bankruptcy filing triggers an event of default under a finance contract between the company's subsidiary IO Biotech ApS and the European Investment Bank (EIB). This gives EIB the right to terminate the finance contract and demand immediate repayment of €22.5 million drawn under the agreement, plus accrued interest, prepayment fees and certain costs and expenses.

Any actions by EIB based on the default may be stayed under the Bankruptcy Code, according to the filing.