Endologix, an Irvine, Calif.-based devicemaker, is filing for Chapter 11 bankruptcy and reorganizing to become a privately held company, MedTech Dive reported.
The devicemaker said it plans to complete the reorganization by the end of this year's third quarter and to operate business as usual during the process.
Endologix said it still plans to launch its newest device, a stent graft called Alto, designed to treat abdominal aneurysms, in the coming weeks.
The company's stock has fallen nearly 90 percent in the last 12 months, according to MedTech Dive.
In June, Endologix faced a class I recall of another of its abdominal stent grafts, tied to 65 adverse events and five deaths.
The company's first-quarter results, reported in May, showed year-over-year global revenues down about 20 percent to $28.5 million. It was facing financial instability before the COVID-19 pandemic hit, as its full year 2019 revenues were down 8.4 percent compared to the prior year's.
The bankruptcy filing listed assets as of May 31 as nearly $280 million and debt near $245 million, MedTech Dive reported.
Endologix said a reorganization would eliminate $180 million in debt and give it access to over $110 million in new financing.
The company hired an interim chief financial officer to help it transition to a private company, according to MedTech Dive.
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