Baxano (NSDQ:BAXS) said today that it’s filed for Chapter 11 bankruptcy protection amid plans to sell of its minimally invasive line of spine surgery devices, as CFO Timothy Shannon and 2 board members resign from the Raleigh, N.C.-based company.
"We believe this is the best course of action for the company at this point in time and is in the best interests of all of our stakeholders," CEO Ken Reali, President and CEO of Baxano Surgical. "As we move through this transaction process we will continue to focus on supporting our commercial business and the surgeons and hospitals that use our products."
The move comes 2 months after Baxano tapped investment bank Houlihan Lokey to help it consider "strategic alternatives." Baxano merged with Trans1 back in March 2013, uniting TranS1’s reach in minimally invasive lumbar spine treatments with Baxano’s iO-Flex spinal decompression surgery system and iO-Tome precision facetectomy instrument.
Baxano said its lender, Hercules Technology Growth Capital, agreed to provide "debtor in possession" financing to back continued operations during the sale.
In a separate regulatory filing, Baxano said board members Dr. Russell Hirsch and Roderick Young and CFO Shannon, who was also treasurer and secretary, all resigned last week.