By Ted Gavin, CTP, NCPM, Managing Director & Founding Partner

On Friday, August 2, 2024, after the United States Bankruptcy Court for the District of Delaware approved the restructuring plan for ProSomnus, the company’s plan went into effect. ProSomnus officially emerges from bankruptcy with creditors paid in full – including unsecured creditors. Gavin/Solmonese would like to congratulate our client, ProSomnus, for the enormous amount of hard work that went into this effort and applaud the work of the Debtor’s counsel, Polsinelli PC, and the lenders’ counsel, Lowenstein Sandler and Morris James.

In May of this year, ProSomnus voluntarily filed for Chapter 11 bankruptcy as a strategic move to restructure its capital structure and secure its future. The Pleasanton, Calif-based company makes a successful mouthguard-like device to treat sleep apnea and has over 200,000 satisfied customers. The restructuring plan approved today by the court reduces debt by 60% and converts the company to a private entity, eliminating significant public company costs. Additionally, existing investors have agreed to provide additional financing to secure the company’s future growth.

Throughout the bankruptcy and restructuring process, ProSomnus continued normal business operations without disruption, serving customers and paying employees and suppliers.

It is rare that we’re able to say that a company is emerging from a bankruptcy with all unsecured creditors paid in full — but that is, in fact, what ProSomnus has accomplished. We congratulate the board and management team at ProSomnus for their hard work to get here and look forward to their continued success.