Hercules Tech Provides Baxano Surgical DIP Financing
Baxano Surgical announced that the company has filed a voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware. The bankruptcy filing will facilitate a going concern sale of the Baxano Surgical minimally invasive products under §363 of the Bankruptcy Code.
In conjunction with the bankruptcy filing, Hercules Technology Growth Capital, Baxano Surgical’s pre-petition secured lender, has agreed to provide debtor-in-possession financing on the terms set forth in the applicable loan documents and subject to Bankruptcy Court approval to support Baxano Surgical’s continued operations during the pendency of the sale process.
“We believe this is the best course of action for the company at this point in time and is in the best interests of all of our stakeholders,” stated Ken Reali, president and CEO of Baxano Surgical. “As we move through this transaction process we will continue to focus on supporting our commercial business and the surgeons and hospitals that use our products.”
Any sale of Baxano Surgical’s products in connection with the bankruptcy case will be subject to bankruptcy court approval. In addition, such sale may be subject to antitrust approval, other approvals as may be required by law, and customary conditions. As a result, there can be no assurance that such sale will be consummated.
Stevens & Lee is serving as legal advisors, Houlihan Lokey is serving as investment banker and Tamarack Associates is serving as restructuring advisor to Baxano Surgical.
Baxano Surgical is a medical device company focused on designing, developing and marketing minimally invasive products to treat degenerative conditions of the spine affecting the lumbar region.