Shares of Sientra plunged Tuesday after the surgical aesthetics company filed for chapter 11 bankruptcy with plans to pursue a sale of its business through a court-supervised auction process, WSJ Pro Bankruptcy reported. Sientra shares were recently down 52% at 28 cents. Shareholders are generally wiped out in bankruptcy cases. Sientra said it would seek an expedited sale process, adding that it would use its existing cash reserves and $22.5 million in debtor-in-possession financing from its existing lenders to facilitate the sale and support its continuing operations. The Irvine, Calif., company said the debtor-in-possession financing will also include a roll-up of $67.5 million of its prebankruptcy debt obligations. Sientra said it aims to emerge from the bankruptcy process with increased financial stability, and that multiple parties have expressed interest in an acquisition.
