Cutera files for Chapter 11 to initiate restructuring transaction

Cutera (CUTR) announced that it is initiating a restructuring transaction with the support of a group of existing lenders, representing approximately 74% of the company’s notes. Through the transaction, Cutera will reduce its debt by nearly $400M, or over 90%, and raise $65M in new money from its existing lenders. To implement the transaction, Cutera has filed voluntary “pre-packaged” Chapter 11 cases in the U.S. Bankruptcy Court for the Southern District of Texas. Cutera will operate as usual throughout the court-supervised process and continue to provide best-in-class solutions to its customers around the globe without disruption. Cutera has negotiated and solicited votes on its restructuring plan in advance and expects to complete this process quickly and efficiently, within 60 days. At the end of the process, Cutera will be a private company. The company has filed a request with the Court that will allow it to make timely payments to vendors in full under normal terms for goods and services delivered both before and after the filing. Cutera expects to receive approval for this request. The company’s entities located outside of the U.S. are not included in the Chapter 11 filings.