Tucson-based artificial heart maker SynCardia Systems has Inc. has filed for Chapter 11 bankruptcy reorganization and entered into an agreement to sell all of its assets to a Philadelphia private-equity firm.
SynCardia, maker of the only temporary artificial heart approved by the FDA as a bridge to transplant, will continue operations without interruption as an affiliate of Versa Capital Management LLC seeks court approval to buy the assets out of bankruptcy and recapitalize the company.
To fund operations, Versa has agreed to provide the company with financing as it reorganizes in bankruptcy court. The deal will ensure that SynCardia has adequate liquidity to continue to provide products and services to more than 120 SynCardia certified implant centers worldwide during the sale process, Versa said in a press release.
SynCardia filed a voluntary Chapter 11 bankruptcy petition in the U.S. Bankruptcy Court in Delaware, where the company is incorporated.
The Versa asset purchase will require court approval, subject to higher or better offers, and the company has proposed that the sale process be completed in about 45 days, Versa said.
SynCardia hired an investment banking firm in November 2015 to explore strategic alternatives such as a sale, after withdrawing a proposed initial public offering of stock in October.
Additional information, including court filings and related documents, can be found online at omnimgt.com/SynCardia.
