Endologix Inc., which makes medical devices for aortic disorders, has filed for chapter 11 protection and agreed to a plan of reorganization supported by Deerfield Partners, its largest creditor, that will take it private, the Los Angeles Business Journal reported. Irvine, Calif.-based Endologix said that “after evaluating a variety of strategic options,” it decided the bankruptcy filing provided “the best path to address financial challenges resulting from COVID-19 and the related delays in elective medical procedures and to realize the full benefits of operational enhancements made over the past two years.” Endologix’ stock plummeted to a record low Monday after the announcement and was trading at 25 cents a share by late afternoon trading, down 68 percent from Friday’s close. Under the terms of the reorganization plan, Endologix will become a private company and said it expects to emerge well-capitalized by the end of the third quarter of 2020 and positioned for long-term growth.
