Reva Medical files for bankruptcy

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Reva Medical (ASX:RVA) announced today that it has filed for Chapter 11 bankruptcy protection.

Reva, based in San Diego, specializing in bioresorbable polymer technology for vascular applications, struck a restructuring support agreement with a handful of its stakeholders last month. The objective was to settle the outstanding debt of the company.

Reva also filed a pre-arranged reorganization plan to provide uninterrupted wages and benefits to employees while paying vendors and suppliers as usual, with court approval. Reva also plans to continue its ordinary activities and plans to use the provisions of the Bankruptcy Code which require suppliers to comply with the terms of pre-existing contracts.

The company said it has secured pre-petition funding worth $ 4.4 million to help it meet its short-term financial commitments. Reva said she hopes to exit the Chapter 11 process “as quickly as possible” while focusing on its peripheral vascular product line and growing its embolic business, according to a press release.

“While the clinical outcome data for the Company’s Fantom and Fantom Encore Bioabsorbable Scaffolds (BRS) remain excellent, the adoption of BRS has been greatly affected by concerns about the clinical data of competing substandard devices,” said said Jeffrey Anderson, president of Reva. noted in the press release. “As a result, we are focusing on opportunities in the interventional and embolic peripheral market segments. “

The company’s voluntary bankruptcy petition, filed this week in the U.S. bankruptcy court in Delaware, lists $ 5.9 million in assets and 104.5 million in debt. The main unsecured receivables were from investors: nearly $ 45 million owed to Elliott Associates, about $ 25 million owed to Goldman Sachs and $ 18 million owed to Senrigan Master Fund of Senrigan Capital Group.

In February 2019, Reva announced its intention to reduce its workforce by 44%, leaving 22 employees remaining with the company at that time.

Editor-in-chief Chris Newmarker contributed to this report.



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