Vyaire’s CEO says the move will give the company “breathing room” as it pursues the sale of its business units amid ongoing financial difficulties.
RT’s Three Key Takeaways:
- Vyaire Medical has filed for Chapter 11 bankruptcy protection in the US to secure financing and maintain operations after failing to meet financial performance expectations in the first half of the year, which hindered debt refinancing efforts.
- The company plans to market its respiratory diagnostics (RDx) and ventilation business units for sale to well-financed buyers.
- Vyaire Medical says it intends to support ongoing operations, uphold commitments to employees and partners, and comply with US Bankruptcy Code requirements while seeking a stable future through the sale of its business units.
Ventilator manufacturer Vyaire Medical has filed for Chapter 11 bankruptcy protection in the United States, a decision the company says follows “below-plan performance” in the first half of the financial year, which hindered efforts to refinance company debt.
The move will allow the company to obtain sufficient financing to continue business operations while it markets its business units for sale.
“Chapter 11 protection will offer us the breathing room we need to explore selling our businesses to capable, well-financed buyers that have the financial ability and stability to execute on the respiratory diagnostics (RDx) and ventilation business strategies delivering our vital products to customers and patients in need,” says John Bibb, group chief executive officer of Vyaire, in a release. “Our lenders continue to support our business, and we are working together to go through this process with as little disruption as possible to our customers and trusted partners.”
Continuing Operations and Future Plans
Vyaire remains open for business and, upon court approval, will have post-petition financing in hand to continue operations while in Chapter 11. In the coming months, the company will focus on:
- Supporting the continuity of services to customers and honoring commitments to partners and employees, while complying with the terms of the US Bankruptcy Code.
- Selling Vyaire business units to buyers that will support the growth and development of the RDx and ventilation portfolios.
“We remain committed to the success of our customers, our partners, and our employees and will continue to live out our core values in the work we do,” Bibb adds in a release. “Our plan is to maintain the team needed to operate safely and deliver effective healthcare solutions.”
The Chapter 11 filing only applies to Vyaire operations in the US and one non-operational international holding company.
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