A company in another state recently filed for bankruptcy. Specializing in cataract surgery laser systems, it decided to file for Chapter 11 bankruptcy. Companies in the state of Massachusetts and elsewhere can use this type of bankruptcy protection option to reorganize if they are experiencing financial challenges.
Lensar, the laser system company, said it will continue its operations during the reorganization process. A social commerce company called Alphaeon acquired Lensar last year in a stock, debt and cash deal. The deal was valued at an estimated $59 million.
According to Lensar, the bankruptcy filing and its organizational restructuring will enable the company to trim its levels of debt. The company stated that the company’s senior secured creditor, PDL Biopharma, supported the bankruptcy decision. PDL Biopharma in 2013 had made a loan deal with Lensar that was worth up to a total of $60 million. Part of Lensar’s struggles is due to the fact that it has faced stiff industry competition. Other companies, such as LensX Lasers and Technolas Perfect Vision, have attracted more funding from venture capitalists and thus secured high-value exits through sales to medical giants, such as Bausch + Lomb and Abbott.
Chapter 11 bankruptcy is an option for companies in Massachusetts that meet certain thresholds for secured and unsecured debt. However, this type of bankruptcy proceeding can be complicated and requires the filer to prepare and submit a proposed debt reorganization plan for approval by the bankruptcy court. An experienced attorney can help struggling companies to navigate this legal process so that they achieve the debt relief they need for continued success.
Source: optics.org, “Lensar files for Chapter 11 bankruptcy protection“, Dec. 20, 2016