secwatch / observer
8-K filed May 8, 2024, 7:59 PM ET CIK 0001934064
other material confidence high sentiment negative materiality 1.00

ProSomnus, Inc.: going-concern / distress — ProSomnus files Chapter 11, expects equity holders to receive no recovery under pre-negotiated plan

ProSomnus, Inc.

Key facts

Extracted from this filing and checked against the source text.

Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.9

ProSomnus, Inc. incurred credit facility of $13 million with Wilmington Savings Fund Society, F.S.B., as administrative agent and collateral agent maturing November 7, 2024.

Instrument
credit facility
Principal
$13 million
Counterparty
Wilmington Savings Fund Society, F.S.B., as administrative agent and collateral agent
Maturity
November 7, 2024
Event
incurrence
Exact text from the filing
the DIP Lenders have agreed, upon the terms and conditions set forth therein, including the approval of the Court, to make available to the Company a senior subordinate secured debtor-in-possession term loan credit facility in the aggregate principal amount of $13 million
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Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.9

ProSomnus, Inc. faced acceleration on senior notes of $41,669,228.

Instrument
senior notes
Principal
$41,669,228
Event
acceleration
Exact text from the filing
the principal and interest due under the Indentures shall automatically become due and payable. The outstanding principal about due under the Indentures is, in the aggregate, $41,669,228, and the outstanding interest as of May 7, 2024 is $856,254. Any efforts to enforce such payment obligations under the Indentures are automatically stayed as a result of the
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Distress & Bankruptcy SEC 8-K Item 1.03 confidence 0.99

ProSomnus, Inc. entered chapter 11 in United States Bankruptcy Court for the District of Delaware.

Proceeding
chapter 11
Court
United States Bankruptcy Court for the District of Delaware
Exact text from the filing
On May 7 , 2024, the Company Parties filed voluntary petitions for relief under chapter 11 of title 11 of the Code (the "Petitions") in the Court to pursue the Plan.
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Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

ProSomnus, Inc. entered into Restructuring Support Agreement with Sponsoring Noteholders valued at $20.0 million (effective 2024-05-07).

Action
entry
Agreement
credit facility
Counterparty
Sponsoring Noteholders
Value
$20.0 million
Effective
2024-05-07
Exact text from the filing
On May 7, 2024, ProSomnus, Inc. (the “Company”) voluntarily entered into a Restructuring Support Agreement (including all exhibits thereto, collectively, the “RSA”) with (i) certain of its existing affiliates and subsidiaries (as set forth in the RSA, and together with the Company, the “Company Parties”); and (ii) certain sponsoring Senior Noteholders and Subordinated Noteholders (the “Sponsoring Noteholders”).
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311 debt financings filed in the last 30 days. Browse all debt financings →

Source: SEC EDGAR
accession 0001104659-24-058473
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