Vyaire Medical Inc., a company known for its breathing ventilators and other respiratory treatment and diagnostic products, has filed for Chapter 11 protection in Delaware. The filing comes as demand for its products waned following the COVID-19 pandemic.
Vyaire’s Financial Struggles
Late Sunday, Vyaire entered the court with $533 million of secured debt. The company plans to seek buyers for its respiratory diagnostics and ventilator business lines. This decision follows a 2023 transaction where Vyaire garnered $310 million from selling its consumable equipment business, according to a first-day declaration from CEO John Bibb.
“The COVID-19 pandemic significantly increased demand for the company’s products and services, but post-pandemic macroeconomic challenges, including higher interest rates, inflationary pressure, and supply chain disruption forced the company to reposition itself for the long term,” Bibb said in the declaration.
Vyaire Files For Chapter 11 Bankruptcy : Shifting Market Dynamics
Based in Illinois, Vyaire experienced a surge in demand during the peak of the coronavirus pandemic beginning in 2020. However, in recent years, that demand has significantly decreased. Coupled with macroeconomic factors, this downturn has strained Vyaire’s liquidity.
Vyaire Files For Chapter 11 Bankruptcy : Sale and Bidding Process
Vyaire conducted a prepetition process to market its assets to over 100 potential buyers, receiving a few nonbinding indications of interest. The company aims to continue these sale efforts through a competitive bidding and auction process, with hopes of finalizing one or more transactions by the end of July.
Legal Representation
The debtor is represented by Cole Schotz PC and Kirkland & Ellis LLP.
