Sienna Biopharmaceuticals lacks funding; Chapter 11 case converted

By Caroline Salls

Pittsburgh, Dec. 18 – Sienna Biopharmaceuticals, Inc.’s Chapter 11 bankruptcy cases were converted to Chapter 7 on Wednesday by the U.S. Bankruptcy Court for the District of Delaware.

Sienna said in its conversion motion filed on Friday that conversion at this time is in the best interests of its estate, creditors and other interested parties.

“Simply put, without access to cash collateral, the debtor no longer has funding to administer this Chapter 11 case,” the motion said.

“Although there may be estate assets in the form of certain causes of action that may be liquidated in order to satisfy certain creditor claims, without an ability to fund ongoing administrative expenses, the debtor cannot pursue the recovery of those assets or prosecute a Chapter 11 plan.”

Sienna is a Westlake Village, Calif.-based clinical-stage biopharmaceutical company. It filed for bankruptcy on Sept. 16. The Chapter 11 case number is 19-12051.

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