Baxano Surgical (BAXS) Files for Chapter 11 Bankruptcy

November 13, 2014 8:02 AM EST

Baxano Surgical, Inc. (Nasdaq: BAXS) today announced that the Company has filed a voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware. The bankruptcy filing was effected in order to facilitate a going concern sale of the Baxano Surgical minimally invasive products under Section 363 of the Bankruptcy Code.

"We believe this is the best course of action for the company at this point in time and is in the best interests of all of our stakeholders," stated Ken Reali, President and CEO of Baxano Surgical. "As we move through this transaction process we will continue to focus on supporting our commercial business and the surgeons and hospitals that use our products."

In conjunction with the bankruptcy filing, Hercules Technology Growth Capital, Inc., Baxano Surgical's pre-petition secured lender, has agreed to provide "debtor in possession" financing on the terms set forth in the applicable loan documents and subject to Bankruptcy Court approval to support Baxano Surgical's continued operations during the pendency of the sale process.

Any sale of Baxano Surgical's products in connection with the bankruptcy case will be subject to bankruptcy court approval. In addition, such sale may be subject to antitrust approval, other approvals as may be required by law, and customary conditions. As a result, there can be no assurance that such sale will be consummated.

Stevens & Lee. P.C. is serving as legal advisors, Houlihan Lokey is serving as investment banker and Tamarack Associates is serving as restructuring advisor to Baxano Surgical.

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