"We looked at all our options" — Baxano Surgical President and CEO on Chapter 11 bankruptcy protection filing

Spinal Tech

Baxano Surgical filed for Chapter 11 bankruptcy protection last month.

According to a Triangle Business Journal report, The company will sell its product lines — which includes the AxiaLIF family of products for single and two-level lumbar fusion, VEO lateral access and interbody fusion system, iO-Flex minimally invasive lumbar decompression system, iO-Tome facetectomy system and Vectre and Avatar posterior fixation systems — through a court-supervised auction process.

 

"As a company, we looked at all of our options and we came to the conclusion, based on our complex capital structure and liabilities, that to drive the highest value for our technologies we need to undergo the Chapter 11 363 sale process," says Baxano Surgical CEO Ken Reali. "This allows someone to buy the commercial products, inventory and intellectual property rights related to the products without inheriting any liabilities, encumbrances or liens."

 

As early as September, the company began seeking strategic alternatives to sell the core business — minimally invasive spinal fusion products — and engaged Houlihan Lokey as its investment banker.  After filing Chapter 11, Hercules Growth Capital, Baxano's secured lender, has provided financing to continue its commercial operations.

 

"We will continue to support our surgeons and hospitals with our products in fact we are seeing solid sales performance in the fourth quarter as nearly all of our surgeons continue to use our products to help their patients. We also continue to support manufacturing of our products as we replenish inventory and we will be prepared to hand off ongoing commercial operations and inventory to a potential buyer after the auction," says Mr. Reali. "Right now, however, we want to get people engaged into the auction process and we still hope to get multiple bidders in for each of the products."

 

According to Mr. Reali, the company is happy to work with potential bidders and all bids are due by Jan. 20. For stalking horse bidders, the bids are due by Dec. 22nd. John Holman at Houlihan Lokey can be contacted for more information at jholman@HL.com or 310-789-5772.

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