Biedermann Motech, a maker of implants for spinal and extremity surgery, filed for Chapter 11 protection in Delaware bankruptcy court, listing $34 million in debt.
The late Wednesday filing did not include the usual first-day declaration but did feature a Chapter 11 plan and its disclosure statement. As of Thursday, it was unclear if the case was a prepackaged bankruptcy, where creditors are solicited before the filing.
In the disclosure statement filed Thursday, Biedermann Motech Inc. President Markku Biedermann revealed the company holds about $34 million in debt and assets worth up to $10 million. The statement did not detail the reasons for the bankruptcy filing.
Biedermann Motech Files for Bankruptcy : Proposed Chapter 11 Plan
Under the proposed Chapter 11 plan, unpaid allowed administration claims and fee claims will be paid in cash. General unsecured claims holders would receive a pro-rata distribution of $50,000, according to the disclosure statement.
Creditors and Debts
Among the company’s creditors are Biedermann Technologies GmbH & Co. in Germany, holding about $25 million in unsecured claims, and Lutz Biedermann, the company’s chairman, who holds around $10 million, according to the petition.
Business Enhancements and Mergers
The company has attempted to enhance its business, including merging Biedermann Motech and Miami Device Solutions LLC, reducing rental spaces and overhead costs, payroll, marketing expenditures, and reorganizing key vendors such as implant suppliers, a cleaning company, and IT providers, according to the disclosure statement.
Biedermann Motech Files for Bankruptcy : Company Background
Biedermann Motech, a mid-sized family-owned company, operates in Miami, Florida, and Villingen-Schwenningen, Germany, according to its website. The company, also known as Miami Device Solutions LLC, has provided orthopedic trauma implants for the spine and upper extremities since 1916.
