Stimwave Technologies is in post-confirmation liquidation, with the SWTI Liquidating Trust now administering final wind-down matters after paying Class 3 general unsecured claims in full and reconstituting trust oversight in favor of the Series E representative, as noticed in the payment-in-full and committee reconstitution noticeDkt. 1514.
The company entered chapter 11 on June 15, 2022, after financial irregularities and potential regulatory violations discovered in late 2019, a DOJ investigation, and litigation against its former CEO left the medical-device business with constrained liquidity and a complex capital structure. At filing, Stimwave reported less than $27,000 of cash, funded debt including Term A, Term B, and Term C obligations, and a proposed Kennedy Lewis-backed path built around a credit-bid stalking horse transaction and $40 million DIP financing, according to the Bruneau first-day declarationDkt. 2.
The case moved from operating stabilization and sale financing into a liquidation framework. The debtors later filed a disclosure statement describing the Kennedy Lewis prepetition loan collateral package and restructuring background in the first amended disclosure statementDkt. 702, then filed the Second Amended Joint Plan of LiquidationDkt. 768 and related amended plan supplement exhibitsDkt. 784. The plan posture is therefore not a going-concern reorganization; it is a trust-administered liquidation and distribution process.
The latest reporting shows that the wind-down is advanced but not closed. For Stimwave Technologies, the Q1 2026 post-confirmation report shows $772,746 of quarterly cash disbursements, $11.3 million of cumulative disbursements since the May 31, 2023 effective date, cumulative professional fees of $913,548, ongoing claims reconciliation, and an anticipated final decree application by December 31, 2026 in the post-confirmation report for the quarter ended March 31, 2026Dkt. 1512. The key remaining path is completion of trust administration, final distributions after the Class 3 payment milestone, and case closure.
