Joel R. Glucksman
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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
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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
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