July 5, 2020
Endologix Will Become Private Company Under Reorganization Plan
July 5, 2020—Endologix, Inc. announced that it has initiated a voluntary Chapter 11 case and simultaneously filed a consensual plan of reorganization supported by Deerfield Partners as its largest creditor. The company intends to operate its business as usual during the process.
Endologix will become a private company. The company expects to complete the process by end of the third quarter of 2020, emerging as a private company with the financial flexibility necessary to accelerate investment in new technologies focused on the abdominal aortic aneurysm treatment.
According to Endologix, a variety of strategic options were evaluated. These actions were deemed to provide the best path to address the company’s financial challenges that resulted from COVID-19 and the related delays in elective medical procedures and to realize the full benefits of operational enhancements made over the past 2 years.
Under the terms of the proposed plan of financial reorganization, Endologix will eliminate approximately $180 million of debt from its balance sheet on a net basis, including approximately $130 million of debt currently held by Deerfield that will convert to equity in the reorganized company. The company also expects to gain access to $110.8 million of new financing through this process, including $30.8 million in debtor-in-possession financing from Deerfield, an additional $30 million in exit financing from Deerfield, and $50 million in rolled over debt from the company’s current first-lien debt.
Supported by the additional financing, Endologix intends to meet its financial obligations, including paying suppliers in the normal course of business for goods and services delivered from the date of the announcement and forward.
The agreement with Deerfield, once approved by the Court, would allow trade suppliers who agree to provide terms to the company during and after the Chapter 11 process to also be paid in full for prepetition goods and services. Endologix also has filed the customary motions to honor its ongoing commitments to employees and customers.
The case is being heard in the US Bankruptcy Court for the Northern District of Texas (Dallas). Additional information about the restructuring can be found at the company's dedicated website, www.Endologix-forward.com. Legal filings and claims information can be found at https://omniagentsolutions.com/Endologix.