SmileDirectClub files Chapter 11 bankruptcy with over $1 billion in debt

By Sarah Lizee

Olympia, Wash., Sept. 29 – SmileDirectClub Inc. filed Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Southern District of Texas on Friday to implement a recapitalization transaction, according to a press release.

The company said additional capital and a stronger financial position from the recapitalization are intended to bolster its balance sheet and fuel growth initiatives.

SmileDirectClub said its founders have committed to invest at least $20 million to strengthen its balance sheet and to protect its near- and long-term financial health.

Up to $60 million of additional capital is available upon satisfaction of certain conditions, including the favorable conclusion of a marketing process.

In its petition, the company listed more than 100,000 creditors, $500 million to $1 billion in assets and $1 billion to $10 billion in assets.

Its largest unsecured creditors are Wilmington Trust, NA, based in Wilmington, Del., with a $747.5 million convertible notes claim, and Align Technology, Inc., based in San Jose, Calif., with a $63 million litigation claim.

SmileDirectClub is represented by Kirkland & Ellis LLP as legal counsel, FTI Consulting as financial adviser and Centerview Partners as investment banker.

SmileDirectClub is a Nashville-based oral care company. The Chapter 11 case number is 23-90786.

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