ProSomnus, Inc., a company specializing in medical devices, has received the green light from the Bankruptcy Court to proceed with its Chapter 11 reorganization plan. The decision, made on Monday, allows the company to start soliciting votes for the plan, which aims to restructure the company's debts and operations.
The Bankruptcy Court's approval of the Disclosure Statement for the Amended Joint Chapter 11 Plan of Reorganization signifies that the provided information is sufficient for stakeholders to make an informed decision. ProSomnus and its debtor affiliates can now actively work towards confirmation of the plan.
A confirmation hearing has been scheduled, where the court will consider approving the Chapter 11 Plan of Reorganization. The hearing will also address any objections to the plan's confirmation. Deadlines associated with the confirmation process, including the submission of objections, have been established by the court.
ProSomnus, previously known as LAAA Merger Corp., and its subsidiaries filed for Chapter 11 bankruptcy protection on May 8, 2024. The filing was part of a strategic move to address financial challenges and ensure the company's long-term viability.
Since the delisting of ProSomnus's common stock and warrants from the Nasdaq Stock Market on April 18, 2024, the securities have been traded over-the-counter under the symbols "OSAP" and "OSAPW."
This development represents a significant step in ProSomnus's efforts to restructure and emerge from bankruptcy. The confirmation hearing notice and related documents are available on the case's dedicated website, although this information is not incorporated by reference into this article.
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