(Bloomberg) -- Medical-equipment provider Avante Health Solutions filed for bankruptcy in order to sell its business to an affiliate of private equity firm Staple Street Capital.
Avante and several affiliates sought court protection from creditors on Tuesday in Delaware, listing on its Chapter 11 petition assets of between $50 million and $100 million and liabilities of between $100 million and $500 million.
Chicago-based Avante said in a statement that Staple Street Capital has agreed to acquire “substantially all of the company’s assets” and that the transaction will support a recapitalization of its business and cut debt from its balance sheet.
Financial terms of the proposed sale couldn’t immediately be learned. However, Staple Street Capital’s offer is in the form of a so-called stalking horse bid, meaning the transaction is subject to better offers if any materialize in the coming weeks. The transaction must also be approved by a bankruptcy judge.
Staple Street Capital has also offered to fund the Chapter 11 case, Avante said, adding that the company will continue “operating and serving customers over the long-term.” Terms of the proposed Chapter 11 financing couldn’t be learned but also must be approved by a judge.
The case is Jordan Health Products I Inc., number 24-12271, in the US Bankruptcy Court for the District of Delaware.
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