Tucson, Ariz.-based artificial heart maker SynCardia Systems has filed for chapter 11 reorganization with plans to sell all of its assets to a Philadelphia-based private-equity firm, Tuscon.com reported yesterday. SynCardia, maker of the only FDA-approved temporary artificial heart, will continue operations without interruption, as an affiliate of Versa Capital Management LLC seeks court approval to buy the assets out of bankruptcy and recapitalize the company. To fund operations, Versa has agreed to provide the company with financing as it reorganizes in bankruptcy court. A bankruptcy judge yesterday entered interim orders approving SynCardia’s bankruptcy financing plan and its use of cash to fund operations, subject to a final hearing on Aug. 1. The company also won interim approval to pay its employees and fulfill certain customer obligations.
