REVA Medical files for court approval of prepackaged plan of reorganizationChristian Fernsby ▼ | January 15, 2020
REVA Medical announced that it has filed a voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court in Delaware.
Business in Australia REVA Medical
Topics: REVA Medical reorganization
The Restructuring Support Agreement set forth the details of a series of restructuring transactions aimed to address the Company’s outstanding debt structure through a significant deleveraging and position the Company for long-term growth.
In connection with the Chapter 11 filing and pursuant to the Restructuring Support Agreement, the Company filed a prepackaged plan of reorganization setting forth the details of the restructuring transactions and a series of motions requesting relief from the Bankruptcy Court to allow normal business operations.
Upon approval by the Court, REVA will pay employee wages and benefits without interruption and pay vendors and suppliers in the normal course of business.
Throughout this process, REVA will continue ordinary course operations, including upholding the terms of its international licensing agreements and separately expects to use provisions in the Bankruptcy Code that require suppliers to meet the terms of their pre-existing contracts.
The Company hopes to emerge from the Chapter 11 process as quickly as practicable as a standalone private enterprise focused on its peripheral vascular product line and further development of the embolics business.
In conjunction with the restructuring, REVA has secured additional pre-petition financing of $4.4 million, which, combined with additional post-bankruptcy exit financing will allow REVA to meet its near-term financial commitments. ■