Biolase initiates Chapter 11 proceedings

Biolase announced that the company and its direct domestic subsidiaries have voluntarily initiated Chapter 11 proceedings in the United States Bankruptcy Court for the District of Delaware. Biolase will seek court approval to continue operating during the proceedings. The company also announced that it is pursuing a sale process under Section 363 of the Bankruptcy Code in conjunction with the filing. To this end, Biolase has entered into an asset purchase agreement with Sonendo, a Delaware corporation, which it intends to submit to the court. Under the agreement, Sonendo will acquire substantially all of the assets of Biolase through a court-supervised auction process, subject to Bankruptcy Court approval and certain other conditions, for $14M in cash paid at closing, subject to a working capital adjustment; plus assumption of certain Assumed Liabilities; plus the Delaware Litigation Settlement Value. This bid will serve as a starting point for the company’s sale process, which may include other bidders.