On July 1, 2016, SynCardia Systems, Inc. (“Debtor” or “SynCardia”) filed a voluntary petition for relief under Chapter 11 of the Bankruptcy Code before the United States Bankruptcy Court for the District of Delaware.

According to the Declaration of Stephen Marotta, the Debtor’s Chief Restructuring Officer, SynCardia is a medical technology company that develops artificial heart implants.  In the months leading to the Debtor’s  filing, SynCardia attempted but then withdrew an IPO attempt due to adverse market conditions.  Since then it has become insolvent.

Through the bankruptcy, SynCardia seeks to sell substantially all of its assets on a liquidated basis.  To this end, SynCardia entered into a stalking horse asset purchase agreement with its senior lender in contemplation of a Section 363 sale before the Bankruptcy Court.

SynCardia’s first-day hearing is scheduled for Wednesday, July 6th at 2:00 p.m. (ET).  Among other things, the Debtor has filed a sale motion through which it seeks to establish and approve bid procedures for the sale of substantially all of its assets, and to establish procedures to assume and assign certain executory contracts and unexpired leases.

The Debtor’s bankruptcy proceeding is pending before Judge Walrath.  SynCardia is represented by the law firm of Young, Conaway, Stargatt & Taylor, LLP.

Carl D. Neff is a partner with the law firm of Fox Rothschild LLP.  You can reach Carl at (302) 622-4272 or at cneff@foxrothschild.com.