Company Reaches Agreement With Deerfield
Management Company, L.P. to Provide Debtor-In-Possession Financing
and Purchase All Operating Businesses
"Business as Usual" Operations to Continue
During Chapter 11
MINNETONKA, MN, May 26, 2015 /CNW/ - IMRIS Inc. ("IMRIS" or
"the Company") today announced that the Company, its subsidiary
NeuroArm Surgical Ltd., and its U.S. subsidiary, IMRIS, Inc. have
each filed voluntary petitions under Chapter 11 of the United
States Bankruptcy Code in the United
States Bankruptcy Court for the District of
Delaware.
As part of the filing, IMRIS announced that subject to a
marketing process and Court approval, it intends to sell its
business operations to an affiliate of Deerfield Management
Company, L.P. ("Deerfield"). In addition, the Company has
secured a commitment for debtor-in-possession financing from
Deerfield, which, in addition to
IMRIS's ongoing cash flow, will ensure it is able to continue
meeting its financial obligations throughout the Chapter 11
case. During this time, IMRIS intends to conduct a marketing
process for its operating businesses.
"IMRIS, like many of its competitors, has been undergoing rapid
changes which have hindered its ability to operate profitably on a
long-term basis as currently structured," stated Jay D. Miller, chief executive officer of
IMRIS. "A combination of significant fixed operating
costs allocated to research and development of new technologies and
variability in timing of receipt of customer payments as a result
of the long and delayed installation timeframes of the Company's
products have contributed to on-going operating losses, a
deterioration in liquidity and an erosion in equity value for
IMRIS." Miller added that "we are encouraged with the
opportunity that Deerfield
provides for not only our product lines, but also our key suppliers
and vendors, customers and our dedicated employees throughout the
world." The sale to Deerfield will be subject to a marketing
process and approval by the Bankruptcy Court, and it is expected
that the sale will close sometime in late summer, 2015.
During the interim, IMRIS expects that Chapter 11 protection
will enable the Company to conduct its business operations in the
ordinary course. To that end, the Company is seeking approval from
the court for a variety of First Day and other initial motions,
including requests to make wage and benefit payments to employees,
continuation of its customer programs and the payment of all
creditors in the ordinary course.
None of IMRIS's other operating subsidiaries outside of
the United States and Canada are subject to the Chapter 11
proceedings, and they will continue to operate in the ordinary
course of their businesses.
Additional information on the filing can be found at the Claims
Agent's website at www.kccllc.net/IMRIS.
SOURCE IMRIS Inc.