Summary by Moomoo AI
On May 7, 2024, ProSomnus, Inc., a medical technology company, filed for Chapter 11 bankruptcy and entered into a Restructuring Support Agreement (RSA) with its affiliates, subsidiaries, and certain note holders. The RSA outlines a voluntary restructuring plan, which includes a debtor-in-possession credit facility of $13 million, provided by sponsoring Senior and Subordinated Noteholders, to support the company's operations during the restructuring process. The plan also proposes a new-money equity capital raise of at least $9 million. ProSomnus aims to reorganize its equity structure, with new common equity to be distributed to Subordinated Secured Noteholders, diluting existing equity holders who are expected to experience a complete loss. The company's common stock and warrants were delisted from Nasdaq on April 24, 2024, and are now traded over-the-counter. The restructuring is subject to court approval, with the company operating as a debtor in possession and seeking to continue business operations as usual. The company cautions that trading in its securities is highly speculative and poses substantial risks during the Chapter 11 process.