Surgalign is in a confirmed liquidation posture after the court approved its combined disclosure statement and joint chapter 11 plan on September 27, 2023 through the Confirmation OrderDkt. 485. The case began on June 19, 2023, when Surgalign Holdings and affiliated debtors filed chapter 11 with roughly $8.8 million of cash, a history of operating losses, and an accumulated deficit that had reached $624.2 million by year-end 2022, according to the Rundell First Day DeclarationDkt. 23.
The filing followed a multi-year narrowing of the business. Surgalign had sold its OEM businesses in 2020, built its remaining strategy around spinal hardware and the HOLO AI surgical-guidance platform, and then sold the Coflex and Cofix product lines to Xtant Medical in February 2023 for $17 million. That liquidity did not solve the working-capital problem, and the debtors began a buyer outreach process in March 2023 that produced limited interest before they entered a June 18, 2023 stalking-horse agreement with Xtant for substantially all U.S. hardware assets and equity interests in 11 non-debtor international entities, as described in the Rundell First Day DeclarationDkt. 23.
The restructuring path moved from sale process to liquidation plan. The debtors filed their Combined Disclosure Statement and Joint Chapter 11 PlanDkt. 391 on August 29, 2023, later filed a Second Amended Plan SupplementDkt. 483, and obtained confirmation the next day. The confirmed plan is a liquidation plan with eight classes, leaving the case centered on implementing the plan, administering remaining assets and claims, and distributing value under the confirmed framework rather than reorganizing an operating enterprise.
