Endologix Initiates Bankruptcy Process, In Deal With Deerfield Partners To Be Taken Private

(RTTNews) - Endologix, Inc. (ELGX), a developer of innovative treatments for aortic disorders, announced Monday that it has initiated a voluntary Chapter 11 case, to address financial challenges resulting from COVID-19 and the related delays in elective medical procedures.

The company simultaneously filed a consensual plan of reorganization supported by Deerfield Partners as its largest creditor. Under the plan terms, Endologix will become a private company.

Under the terms of the proposed plan of financial reorganization, Endologix will eliminate approximately $180 million of debt from its balance sheet on a net basis, including approximately $130 million of debt currently held by Deerfield that will convert to equity in the reorganized Company.

The Company also expects to gain access to $110.8 million of new financing through this process, including $30.8 million in debtor-in-possession financing from Deerfield, an additional $30 million in exit financing from Deerfield, and $50 million in rolled over debt from the Company's current first lien debt.

The company expects to complete the Chapter 11 Bankruptcy process by end of the third quarter of 2020, emerging as a private company.

Endologix fully intends to operate its business as usual during the process.

Endologix aims to emerge financially well-equipped to realize the full potential of the most advanced and innovative abdominal aortic aneurysm or AAA pipeline in the industry.

John Onopchenko, Chief Executive Officer of Endologix, said, "As Endologix's largest lender, Deerfield has demonstrated consistent support for our Company's business strategy and mission to transform aortic care for life."

The company plans to initiate the commercial launch of Alto in the U.S. market in the coming weeks and in Europe later this year. In addition, the company intends to enroll first patient in ChEVAS ONE IDE in Q3 2020 and initiate enrollment of Alto RCT later this year, while preparing Nellix 3.5 PMA submission to the FDA.