Project Sage Oldco, Inc. (formerly Sientra, Inc.) is in post-effective-date plan administration after the District of Delaware (Judge John T. Dorsey) confirmed a liquidating chapter 11 plan on June 18, 2024 that went effective ten days later, capping a roughly four-month case built around twin section 363 sales and a Deerfield Partners-led DIP facility.
The debtors — a medical aesthetics manufacturer of FDA-approved silicone breast implants, tissue expanders, fat transfer systems, and the Biocorneum scar-treatment line — filed Chapter 11 petitionsDkt. 1 on February 12, 2024 after a 2023 downturn in breast-augmentation procedures, sales-force attrition, and a minimum-revenue covenant breach under their prepetition first lien term loan created acceleration risk. The first day declaration of CEO Ron MenezesDkt. 3 tied the filing to continuing operating losses, a roughly $747.8 million accumulated deficit at year-end 2023, and tightening liquidity under inflation and rising rates. At filing the capital structure centered on approximately $73 million of prepetition first lien secured obligations to Deerfield Partners and roughly $9 million of trade debt.
To stabilize the estate and fund a sale process, the debtors moved immediately for a $90 million DIP facility from Deerfield, structured as $22.5 million of new money and a $67.5 million roll-up of the prepetition first lien, priced at SOFR plus 7.0% with a 4.0% original issue discount, priming liens, and superpriority administrative claims. The DIP Financing MotionDkt. 15 — supported by investment-bank testimony from Vladimir Moshinsky of and a restructuring declaration from — embedded expedited sale milestones that set the pace for the rest of the case.
The debtors ran that sale process on schedule. A March 28, 2024 auction split the business: Tiger Aesthetics Medical, LLC acquired the breast implant, tissue expander, and fat transfer platform — including the Franklin, Wisconsin manufacturing facility and intellectual property such as ALLOX, DERMASPAN, and SIENTRA — for $42.5 million under a sale orderDkt. 294, while Nuance Intermediary, LLC took the Biocorneum scar-treatment line for $8 million under a separate sale orderDkt. 295. Both orders granted section 363(m) good-faith purchaser protection and transferred assets free and clear under section 363(f).
With going-concern operations sold, the debtors pivoted to a liquidating plan administered by a Plan Administrator. The court entered a confirmation orderDkt. 450 approving the Second Amended Combined Disclosure Statement and Joint Plan on June 18, 2024, and the plan became effective June 28, 2024 — the effective date also terminating the DIP credit agreement. The estate is now in wind-down, with creditor distributions to be funded from sale proceeds and retained-asset recoveries pursued by the Plan Administrator.
