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Endologix third amended pre-packaged plan of reorganization confirmed
By Caroline Salls
Pittsburgh, Sept. 17 – Endologix, Inc.’s third amended plan of reorganization was confirmed Wednesday by the U.S. Bankruptcy Court for the Northern District of Texas.
As previously reported, Endologix filed bankruptcy to implement a plan of reorganization that has the support of its largest creditor, Deerfield Partners.
Under the terms of the plan, Endologix will become a private company and emerge financially well-equipped to realize the full potential of its innovative abdominal aortic aneurysm pipeline.
The company said it will eliminate about $180 million of debt from its balance sheet on a net basis, including $130 million of debt currently held by Deerfield that will convert to equity in the reorganized company.
Trade creditors who agree to provide terms to the company during and after the Chapter 11 process will be paid in full for pre-bankruptcy goods and services, and suppliers will be paid in the normal course of business for goods and services delivered during the bankruptcy process.
Administrative claims, priority tax claims and other priority claims will be paid in full in cash.
A total of $80.8 million of debtor-in-possession facility claims will be assumed as part of an exit facility. In exchange for the balance, these creditors will receive a share of new equity.
Holders of first-lien debt claims will receive a share of new equity.
Holders of other secured claims will be paid in full in cash, receive the collateral securing the claims or have the claims reinstated.
If holders of general unsecured claims will receive a share of a general unsecured creditor distribution amount.
Holders of existing equity interests will receive no distribution.
Irvine, Calif.-based Endologix develops and manufactures minimally invasive treatments for aortic disorders. The company filed bankruptcy on July 5 under Chapter 11 case number 20-31840.
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