Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
Medical Tech Firm, Sotera Wireless, Announces Chapter 11 Bankruptcy Protection
Author: Joel R. Glucksman
Date: November 17, 2016
Key Contacts
Back
Sotera Wireless, the medical technology firm known for the development of its wireless patient monitoring software, recently announced that it had filed for Chapter 11 bankruptcy protection. According to a Mass Device report, the company accumulated mounting debt recently.
Sotera Wireless’ recent financial struggles
In its court documents, the company cited the $13.1 million debt it owed to Silicon Valley Bank and Oxford Finance following the release of its ViSi Mobile system. MedCity News reported that this system was developed to enhance patient safety measures by wirelessly transferring data and alert clinicians when patient health conditions change. The device has experienced several issues since its launch two years ago. As a result, the system eventually lost potential revenues due to delays and increased expenses into the product.
According to its bankruptcy filings, the company recorded a $25.2 million net loss last year with only $526,000 in new revenues.
Sotera Wireless has also been involved in litigation since 2015. Mass Device reported that this civil suit with Masimo, a manufacturer of non-invasive patient monitoring technologies, was over allegations of misappropriation of trade secrets among employees. To date, the legal fees incurred by Sotera Wireless have totaled more than $3 million.
Sotera Wireless’ tentative refinancing plan
Sotera Wireless is currently seeking a buyer. At the moment, its investors include Qualcomm Ventures, West Health, Intermountain Healthcare, Sutter Health Plus, Foxconn, Intel Capital and Sanderling Ventures. As part of its effort to liquidate operations to a potential buyer, Sotera Wireless received a valuation from SVB Analysis, which showed an equity value at $98.9 million and an enterprise value of $88.8 million.
Are you a creditor in a bankruptcy? Have you been sued by a bankrupt? If you have any questions about your rights, please contact me, Joel Glucksman, at 201-806-3364.
- Practices: Bankruptcy & Creditors' Rights, Corporate Transactions & Business, Bankruptcy Litigation
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Failing to Comply With NJ Rent Control Exemption May Prove Costly
What Developers Need to Know About New Jersey’s Rent Control Exemption Law to Ensure Entitlement to Exemption for Newly Constructed Multi-family Housing. A property owner in Jersey City is facing a $400 million federal class action lawsuit alleging that the landlord did not follow the procedural steps required to be eligible for exemption from local […]
Author: Patrick T. Conlon
Crypto Securities Law: When Tokens Become Investment Contracts
The application of traditional federal securities laws to crypto assets continues to evolve. In some cases, the Securities and Exchange Commission (SEC) considers tokens and other digital assets to be securities. This makes them subject to federal securities law, including the Securities Act of 1933 and the Securities Exchange Act of 1934. This classification has […]
Author: Bryce S. Robins
The Due Diligence Process for NY Condominiums and Cooperatives
While the New York City real estate market can be extremely competitive, moving too quickly often backfires. Before purchasing a condominium or cooperative in New York City, it is important to do you homework. Purchasing property in NYC can involve a dizzying number of legal issues. These include condo and co-op rules, rent restrictions, and […]
Author: Jesse M. Dimitro
Smart Contract Legal Issues: Drafting Agreements for Blockchain
Smart contracts feature a unique blend of legal agreement and technical code. This innovation has the potential to reshape how business is conducted. At the same time, smart contract legal issues around enforceability, jurisdiction, identity, and compliance are common. The legal framework for these self-executing agreements is still evolving. What Are Smart Contracts? Smart contracts, […]
Author: Bryce S. Robins
Are Stay Interviews the Key to Retaining Top Talent?
Retaining top talent continues to be one of the greatest challenges facing employers today. Even in an employer’s market, the loss of a key employee can disrupt operations and result in significant costs. While compensation plays a role, long-term retention often depends on workplace culture, communication, and employee engagement. One increasingly popular strategy for improving […]
Author: Angela A. Turiano
Why Secured Transactions Are Important
Secured transactions form the backbone of a wide range of business dealings, including business loans, mortgages, and inventory financing. Because the stakes are often high and relatively minor oversights can have drastic consequences, lenders and borrowers should thoroughly understand how to form an enforceable security agreement that protects their legal rights. What Is a Secured […]
Author: Dan Brecher
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.