ProSomnus seeks ‘renewed foundation’

PLEASANTON, Calif. – ProSomnus, which makes a CPAP alternative for the treatment of obstructive sleep apnea, has filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Delaware, listing more than $26.3 million in assets and $52.89 million in debts. 

In connection with this process, ProSomnus has secured the support of multiple key investors and lenders under a plan that is designed to deliver an aggregate of approximately $20 million of new capital into the company to support ongoing operations and the development of strategic initiatives, including the company’s next generation sensor device. 

“The voluntary restructuring announced today will enable us to move ahead as a stronger company,” said Len Liptak, CEO for ProSomnus Sleep Technologies. “This very difficult decision was reached after conducting several extensive processes to identify alternatives. Reestablishing a healthy financial foundation for our company, with the support of our lenders, we expect to leave the process with more cash, less debt, less expense, and more time to focus on devices, customers and patients. This renewed foundation will place ProSomnus in a position to realize our mission and develop our next generation sensor device technology. I am grateful for the support of our customers, suppliers, and employees as we work through this process.” 

The restructuring plan is being led by SMC Holdings II, LP, CETUS Capital VI, LP, Destinations Global Fixed Income Opportunities Fund, Cedarview Opportunities Masters Fund, LP and Riverpark Strategic Income Fund, each existing lenders to and investors in the company. 

The completion of the plan will result in ProSomnus becoming a private company, thereby eliminating $4 million to $6 million of annual recurring public company costs. 

• In September 2023, Prosomnus announced it had secured $10 million in funding.