Vyaire Medical: $180M DIP and Dual 363 Sales in Chapter 11
Vyaire Medical filed chapter 11 in Delaware on June 9, 2024 after a post-pandemic demand drop in ventilators. A $180 million DIP funded sales to ZOLL and Trudell, with sale orders entered September 4, 2024 and a liquidation plan confirmed in November 2024.
Vyaire Medical, Inc. is a global ventilation and respiratory diagnostics products company headquartered in Mettawa, Illinois. The company filed for Chapter 11 protection on June 9, 2024 in the U.S. Bankruptcy Court for the District of Delaware. Court filings describe a post-pandemic demand drop-off in ventilation products, market share losses in the sub-acute segment, and liquidity pressure tied to high overhead, supply chain disruptions, and a prior consumables sale that failed to provide sufficient runway. Industry coverage of the filing noted the sudden decline in ventilator demand after the COVID-19 surge and the need to restructure the balance sheet, including reporting by Fierce Biotech.
The case centered on a sale-driven restructuring. Vyaire obtained a $180 million debtor in possession facility comprised of $45 million in new money and a $135 million roll-up of first lien term loans, then marketed two operating units for sale. Court filings show that the ventilation business unit was sold to ZOLL Medical Corporation and the respiratory diagnostics business unit was sold to Trudell Medical Limited, with sale orders entered on September 4, 2024. The company said it pursued Chapter 11 to obtain financing while running a value-maximizing sale process for the business units, as described in Vyaire's filing announcement.
By late 2024, Vyaire reported that both sales had closed and that its wind-down plan was approved. A November 21, 2024 report said the ZOLL and Trudell transactions closed and that the Chapter 11 wind-down plan received court approval, while Law360 reported the liquidation plan confirmation after the sales completed. See Medical Design & Development.
| Field | Details |
|---|---|
| Debtor | Vyaire Medical, Inc. |
| Court | U.S. Bankruptcy Court for the District of Delaware |
| Case Number | 24-11217-BLS |
| Judge | Brendan Linehan Shannon |
| Petition Date | 2024-06-09 |
| Case Type | Chapter 11 with 363 sales and a liquidation plan |
| Headquarters | Mettawa, Illinois |
| Business Units | Ventilation and Respiratory Diagnostics |
| DIP Facility | $180 million ($45 million new money; $135 million roll-up) |
| Sale Order Date | 2024-09-04 |
| Plan Confirmation | 2024-11-21 (reported) |
| Claims and Noticing Agent | Omni Agent Solutions, Inc. |
Restructuring
Business profile and distress drivers
Court filings describe Vyaire as a global respiratory products company focused on ventilation and diagnostics. The filings cite a post-pandemic demand collapse in ventilation products, more than 10% market share loss in the sub-acute segment between 2021 and 2022, and liquidity strain from high overhead and supply chain disruptions. Management also pointed to a prior consumables business sale that did not provide enough runway and below-plan performance that frustrated refinancing efforts. Similar themes appeared in Financier Worldwide, which noted below-plan performance and refinancing pressure.
DIP financing and liquidity runway
The debtor-in-possession facility totaled $180 million: $45 million in new money and a $135 million roll-up of prepetition first lien term loans. The new money was split between $25 million available on an interim basis and $20 million upon final approval. Court filings also noted fees including a 2% commitment fee, a 5% backstop fee, and a 1.25% exit fee, with maturity tied to sale or plan consummation triggers. Law360 reported the interim approval of the initial $25 million.
Sale process and asset transactions
The court-approved sale process set bidding milestones in July 2024, with an indication of interest deadline on July 1, a bid deadline on July 22, and a sale hearing scheduled for July 31. The resulting transactions split the operating business into two strategic sales: ZOLL Medical Corporation acquired the Ventilation Business Unit and Trudell Medical Limited acquired the Respiratory Diagnostics Business Unit, including MIM shares valued at approximately $30 million in a multi-step structure. A November 21, 2024 report confirmed the closings in the Medical Design & Development coverage.
Plan structure and creditor treatment
The plan filed in September 2024 provided for a liquidation and wind-down after the business unit sales. Court filings show that secured tax, other secured, and priority claims were unimpaired, while first lien and second lien claims were impaired and entitled to pro rata distributable value after DIP claims and senior classes. General unsecured claims were impaired, and equity interests and section 510(b) claims received no distribution. Law360 and Cole Schotz reported the plan confirmation after the sales closed.
Claims and noticing agent
Court filings show that Omni Agent Solutions, Inc. was retained as the administrative agent, including claims and noticing agent responsibilities and solicitation and balloting support.
Key timeline
| Date | Milestone |
|---|---|
| 2024-06-09 | Chapter 11 petition filed |
| 2024-06-10 | First day declaration and DIP motion filed |
| 2024-06-12 | Interim DIP order entered ($25 million) |
| 2024-07-01 | Indication of interest deadline |
| 2024-07-11 | Final DIP order entered; bidding procedures order entered |
| 2024-07-22 | Bid deadline |
| 2024-07-24 | Auction date (if required) |
| 2024-07-31 | Sale hearing |
| 2024-09-04 | ZOLL and Trudell sale orders entered |
| 2024-09-11 | Plan filed |
| 2024-09-30 | Amended plan filed |
| 2024-11-21 | Sales closed and wind-down plan approved (reported) |
Frequently Asked Questions
What is Vyaire Medical? Vyaire Medical is a global company focused on ventilation and respiratory diagnostics products and is headquartered in Mettawa, Illinois. Court filings describe two operating business units: Ventilation and Respiratory Diagnostics.
Why did Vyaire file for Chapter 11? Court filings cite a post-pandemic demand drop-off in ventilation products, more than 10% market share loss in the sub-acute segment, high overhead, supply chain disruptions, and liquidity pressure after a prior consumables sale failed to provide adequate runway.
What was the capital structure entering bankruptcy? Court filings show $135 million of first lien term loans that were rolled into the DIP facility, with second lien facilities also present and impaired under the plan.
How large was the DIP financing? The DIP facility totaled $180 million, including $45 million of new money and a $135 million roll-up of prepetition first lien term loans.
Who bought the Ventilation Business Unit? ZOLL Medical Corporation acquired the Ventilation Business Unit under a court-approved sale order entered on September 4, 2024.
Who bought the Respiratory Diagnostics Business Unit? Trudell Medical Limited acquired the Respiratory Diagnostics Business Unit, including MIM shares valued at approximately $30 million as part of a multi-step transaction.
What did the plan provide for secured creditors? Court filings show that first lien and second lien claims were impaired and entitled to pro rata distributable value after DIP claims and senior classes.
What happened to unsecured claims and equity? General unsecured claims were impaired under the plan, while equity interests and section 510(b) claims received no distribution.
When was the wind-down plan approved? Vyaire reported on November 21, 2024 that the sales closed and the wind-down plan received court approval. Law360 also reported plan confirmation after the sales completed.
Who is the claims and noticing agent? Omni Agent Solutions, Inc. served as the claims and noticing agent.
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