Reva Medical Inc. voluntarily filed for Chapter 11 bankruptcy protection with the U.S. Bankruptcy Court for the District of Delaware and said it will continue to operate its business and manage the company's property.
Before the filing, on Dec. 23, 2019, the San Diego-based medical device manufacturer entered into a restructuring support agreement with certain of its key stakeholders.
The 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 it for long-term growth.
Reva has asked the court to allow the company to continue using its cash management system and to pay its employees, vendors, suppliers and contract parties. Additionally, the company is seeking to establish procedures for the transfer of equity interests.
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 seeks 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 addition, Reva has secured additional pre-petition financing of $4.4 million, which, along with additional post-bankruptcy exit financing will allow the company to meet its near-term financial commitments.