Sientra Inc., a breast implant manufacturer that filed bankruptcy this week, won court approval to start drawing from a $90 million Chapter 11 loan provided by Deerfield Partners LP as it attempts to sell its business, Bloomberg News reported. Judge John Dorsey said yesterday he’d give interim approval to the loan, which provides Sientra $22.5 million in new money and rolls-up as much as $67.5 million in existing company loans. Roll-ups are provisions commonly used in bankruptcy financing that move companies’ existing debt to the front of the chapter 11 repayment line in lockstep with newly lent money. The chapter 11 financing will give Sientra cash to continue operating while it attempts to sell its business. Sientra lawyer Nicole Greenblatt said during the company’s first court hearing Wednesday that it has has garnered additional expressions of interest since filing chapter 11 on Monday. Wednesday’s ruling gives Sientra immediate access to $9 million, according to court documents. The company will seek approval from Judge Dorsey at a later hearing to tap the rest of the bankruptcy financing.
