Imris files for Chapter 11 bankruptcy

Imris Inc. (TSX:IM) said today that it and 2 subsidiaries, including its NeuroArm Surgical business, filed for Chapter 11 bankruptcy protection.

The filing comes with a possible bailout from Deerfield Management, which Imris says is subject to a marketing process and approval by the bankruptcy court. Imris plans on selling to Deerfield barring any issues with the purchase.

Imris will receive debtor-in-possession financing from Deerfield, the company said. None of Imris’ other subsidiaries operating outside of the U.S. and Canada will be affected.

"Imris, like many of its competitors, has been undergoing rapid changes which have hindered its ability to operate profitably on a long-term basis as currently structured. A combination of significant fixed operating costs allocated to research and development of new technologies and variability in timing of receipt of customer payments as a result of the long and delayed installation time frames of the company’s products have contributed to on-going operating losses, a deterioration in liquidity and an erosion in equity value for Imris," CEO Jay Miller said in a press release.

Deerfield last year raised $1.6 billion to invest in healthcare companies, saying the funds were "designed to provide flexible private financing to healthcare companies."

"We are encouraged with the opportunity that Deerfield provides for not only our product lines, but also our key suppliers and vendors, customers and our dedicated employees throughout the world," Miller said in prepared remarks.

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