Sientra, a surgical aesthetics company, filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the District of Delaware on Feb. 12. The company further disclosed that it intends to pursue a sale of its business under Section 363 of the U.S. Bankruptcy Code while continuing to support its customers during the Chapter 11 process. The company is seeking to execute an expedited sale process.
Sientra will utilize existing cash reserves and $22.5 million in new money debtor-in-possession financing from existing lenders to facilitate the sale and support ongoing company operations. The debtor-in-possession financing will also include a “roll up” of $67.5 million of Sientra’s prepetition debt obligations. The company will continue to operate its business during this process.
“Our goal is to emerge from this process with increased financial stability and positioned for long-term success under new ownership, and we are very encouraged that multiple parties have expressed interest in an acquisition of Sientra,” Ron Menezes, president and CEO of Sientra, said. “We look forward to the opportunity to become part of an organization that understands the value of our broad product portfolio and legacy in plastic surgery. In the interim, we remain focused on providing our customers with quality service, continuous manufacturing and access to our products.”
