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Sienna Biopharmaceuticals files bankruptcy to explore alternatives
By Caroline Salls
Pittsburgh, Sept. 18 – Sienna Biopharmaceuticals, Inc. filed Chapter 11 bankruptcy Monday in the U.S. Bankruptcy Court for the District of Delaware to allow a restructuring and look for a buyer or partner, according to a news release.
“We believe this decision is in the best interests of Sienna and its stakeholders,” president and chief executive officer Frederick C. Beddingfield III said in the release.
“The protections afforded by Chapter 11 provide for an orderly restructuring process as well as additional time to pursue financial and strategic alternatives.
“Through this process, we expect to be able to maintain ongoing business activities while we continue to focus our resources on locating a purchaser or strategic partner to maximize the value of the company.”
The company said it intends to continue to manage and operate its business while in bankruptcy.
Sienna requested court approval to use the cash collateral of its pre-bankruptcy lender to fund it operations while in Chapter 11.
The interim cash collateral order requires the company to obtain letters of intent from proposed purchasers or plan sponsors and file a sale motion or Chapter 11 plan within 45 days of the bankruptcy filing date.
According to court documents, Sienna had $107.63 million in assets and $80.64 million in debt as of June 30.
The company’s largest unsecured creditor is Charles River Laboratories of Wilmington, Mass., with a $1.12 million trade debt claim.
No other unsecured creditors were listed with claims of $1 million or more.
Latham & Watkins has been retained as legal counsel and Cowen and Co. as investment bank to review financial and strategic alternatives.
Sienna is a Westlake Village, Calif.-based clinical-stage biopharmaceutical company. The Chapter 11 case number is 19-12051.
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