In a high-stakes bankruptcy showdown, medical implant maker Exactech has struck a $10 million settlement with its equity sponsor, private equity giant TPG, just days before seeking approval to move forward with its Chapter 11 restructuring plan. The agreement, revealed in Delaware bankruptcy court on Friday, comes amid mounting tensions with unsecured creditors, who argue they need more time to assess its impact before a pivotal hearing next week.
A Tumultuous Path Through Bankruptcy
Exactech, a Florida-based orthopedic device manufacturer, filed for Chapter 11 protection in October, weighed down by $352 million in debt and a flood of lawsuits from patients who received recalled joint implants.
The company entered bankruptcy with a pre-negotiated restructuring support agreement backed by its senior lenders, who provided an $85 million debtor-in-possession (DIP) loan and positioned themselves as stalking horse bidders in an auction for Exactech’s assets. Earlier this month, the company accepted a $303 million credit bid from those lenders, further solidifying their control over the process.
