Sientra, Inc., a company specializing in surgical aesthetics, has recently filed for Chapter 11 protection in the U.S. Bankruptcy Court for the District of Delaware, intending to facilitate the sale of its business.
In the aftermath of the announcement, the company's stock fell by a staggering 65.81 percent, reducing its value from $0.585 to $0.20. This amount was based on a trading volume of 1,635,724 on the Nasdaq. Notably, Sientra had seen a range in price from $0.25 to $4.93 over the past year.
To support its continuing operations, Sientra announced its intention to make use of $22.5 million of debtor-in-possession financing from its current lenders. This funding includes $67.5 million derived from Sientra's prepetitioned debt obligations and its existing cash reserves.
