Sientra to Pursue Strategic Sale of its Business Through Voluntary Chapter 11 Process
February 13 2024 - 8:30AM
Sientra, Inc. (NASDAQ: SIEN) (“Sientra” or the “Company”), a
surgical aesthetics company developing and commercializing safe and
innovative solutions for the best aesthetic outcomes, announced
that it filed for Chapter 11 protection in the United States
Bankruptcy Court for the District of Delaware on February 12, 2024.
The Company further disclosed that it intends to pursue a sale of
its business under Section 363 of the Bankruptcy Code, while
continuing to support its customers during the Chapter 11 process.
The Company seeks to execute an expedited sale process.
Sientra will utilize existing cash reserves and $22.5 million in
new money debtor-in-possession financing from existing lenders to
facilitate the sale and support ongoing Company operations. The
debtor-in-possession financing will also include a “roll up” of
$67.5 million of Sientra’s prepetition debt obligations. The
Company will continue to operate its business during this
process.
“Our goal is to emerge from this process with increased
financial stability and positioned for long-term success under new
ownership, and we are very encouraged that multiple parties have
expressed interest in an acquisition of Sientra,” said Ron Menezes,
Sientra’s President and Chief Executive Officer. “We look forward
to the opportunity to become part of an organization that
understands the value of our broad product portfolio and legacy in
plastic surgery. In the interim, we remain focused on providing our
customers with quality service, continuous manufacturing, and
access to our products.”
Court filings and information about the Chapter 11 case can be
found at a website maintained by the Company's claims agent Epiq
Corporate Restructuring, LLC at https://dm.epiq11.com/Sientra.
Kirkland & Ellis LLP and Pachulski Stang Ziehl & Jones are
serving as legal counsel, Stifel / Miller Buckfire is serving as
investment banker, and Berkeley Research Group, LLC is serving as
financial advisor.
About SientraHeadquartered in Irvine,
California, Sientra is a surgical aesthetics company focused on
empowering people to change their lives through increased
self-confidence and self-respect. Backed by unrivaled clinical and
safety data, Sientra’s platform of products includes a
comprehensive portfolio of round and shaped breast implants, the
first fifth-generation breast implants approved by the FDA for sale
in the United States, the ground-breaking AlloX2®breast tissue
expander with patented dual-port and integrated drain technology,
alongside our single port tissue expander DERMASPAN designed to
enable a gentler, more predictable expansion, the next-generation
AlloX2Pro™, the first FDA-cleared MRI-compatible tissue expander,
the Viality™ with AuraClens™ enhanced viability fat transfer
system, the SimpliDerm® Human Acellular Dermal Matrix, and
BIOCORNEUM the #1 performing, preferred and recommended scar gel of
plastic surgeons (*).
Sientra uses its investor relations website to publish important
information about the Company, including information that may be
deemed material to investors. Financial and other information about
Sientra is routinely posted and is accessible on the Company’s
investor relations website at www.sientra.com. To learn more
about Sientra, visit our website and follow Sientra on LinkedIn,
Instagram, and Facebook.
(*) Data on file
Forward-Looking StatementsThis press release
contains “forward-looking statements” within the meaning of Section
27A of the Securities Act of 1933, as amended, and Section 21E of
the Securities Exchange Act of 1934, as amended, based on
management’s current assumptions and expectations of future events
and trends, which affect or may affect the Company’s business,
strategy, operations or financial performance, and actual results
may differ materially from those expressed or implied in such
statements due to numerous risks and uncertainties. Forward-looking
statements are made only as of the date of this release. The words
‘‘believe,’’ ‘‘may,’’ ‘‘might,’’ ‘‘could,’’ ‘‘will,’’ ‘‘aim,’’
‘‘estimate,’’ ‘‘continue, ‘‘anticipate,’’ ‘‘intend,’’ ‘‘expect,’’
‘‘plan,’’ ‘‘position,” or the negative of those terms, and similar
expressions that convey uncertainty of future events or outcomes
are intended to identify estimates, projections and other
forward-looking statements. Forward-looking statements
are based on management’s current expectations, beliefs,
assumptions and estimates. These statements are subject to
significant risks, uncertainties and assumptions that are difficult
to predict and could cause actual results to differ materially and
adversely from those expressed or implied in the forward-looking
statements, including risks and uncertainties regarding: the
Company’s ability to obtain court approval from the Bankruptcy
Court with respect to motions or other requests made to the
Bankruptcy Court throughout the course of the Chapter 11 Cases,
including with respect to any final orders relating to the DIP
Credit Agreement; the Company’s ability to access the full amount
available under the DIP Credit Agreement which requires the
satisfaction of certain conditions that may not be satisfied for
various reasons, including for reasons outside of the Company’s
control; the ability of the Company to negotiate, develop, confirm
and consummate a sale of all or substantially all of the Company
Parties’ assets; the effects of the Chapter 11 Cases, including
increased legal and other professional costs necessary to execute
the sale of all or substantially all of the Company Parties’
assets, on the Company’s liquidity (including the availability of
operating capital during the pendency of the Chapter 11 Cases),
results of operations or business prospects; the effects of the
Chapter 11 Cases on the interests of various constituents; the
length of time that the Company will operate under Chapter 11
protection; risks associated with third-party motions in the
Chapter 11 Cases; Bankruptcy Court rulings in the Chapter 11 Cases
and the outcome of the Chapter 11 Cases in general; the Company’s
ability to maintain listing of its common stock on the Nasdaq Stock
Market, LLC; general economic conditions, including inflation,
recession, unemployment levels, consumer confidence and spending
patterns, credit availability and debt levels; the Company’s
ability to attract, motivate and retain key executives and other
associates; the impact of cost reduction initiatives; the Company’s
ability to generate or maintain liquidity and legal and regulatory
proceedings. Forward-looking statements are also subject to the
risk factors and cautionary language described from time to time in
the reports the Company files with the SEC, including those in the
Company’s most recent Annual Report on Form 10-K for the year ended
December 31, 2022 and any updates thereto in the Company’s
Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.
These risks and uncertainties may cause actual future results to be
materially different than those expressed in such forward-looking
statements. Sientra has no obligation to update or revise these
forward-looking statements and does not undertake to do so.
Investor Relations ContactIR@sientra.com
Media ContactRachel Newman
rnewman@realchemistry.com 404-574-8519
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