By Colin Kellaher
Shares of Sientra plunged nearly 50% in premarket trading Tuesday after the surgical aesthetics company filed for chapter 11 bankruptcy with plans to pursue a sale of its business through a court-supervised auction process.
Sientra shares, which closed Monday at 58.5 cents, were recently down 47% to 31 cents in premarket trading. Shareholders are generally wiped out in bankruptcy cases.
Sientra said it will seek an expedited sale process, adding that it will use its existing cash reserves and $22.5 million in debtor-in-possession financing from its existing lenders to facilitate the sale and support its ongoing operations.
The Irvine, Calif., company said the debtor-in-possession financing will also include a roll up of $67.5 million of its pre-bankruptcy debt obligations.
Sientra said it aims to emerge from the bankruptcy process with increased financial stability, and that multiple parties have expressed interest in an acquisition.
Write to Colin Kellaher at colin.kellaher@wsj.com
(END) Dow Jones Newswires
February 13, 2024 08:47 ET (13:47 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.
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