Sientra Pursues Sale Through Voluntary Chapter 11 Process
Portfolio Pulse from Benzinga Newsdesk
Sientra, Inc. is pursuing a sale through a voluntary Chapter 11 bankruptcy process, planning to use its cash reserves and $22.5 million in new debtor-in-possession financing from existing lenders. This financing includes a 'roll up' of $67.5 million of prepetition debt. The company aims to continue its operations during this process.
February 13, 2024 | 1:37 pm
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Sientra, Inc. is undergoing a voluntary Chapter 11 bankruptcy process to facilitate a sale, supported by new debtor-in-possession financing and continuation of operations.
The announcement of a Chapter 11 bankruptcy process typically leads to negative investor sentiment due to the uncertainties and financial distress it implies. Although the company plans to continue operations and has secured new financing, the short-term impact is likely negative due to the inherent risks and stigma associated with bankruptcy proceedings.
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