Rockley Photonics files for chapter 11 bankruptcy

According to a regulatory filing, on January 23, 2023, Rockley Photonics filed a voluntary petition for relief under chapter 11 of title 11 of the United States Code in the United States Bankruptcy Court for the Southern District of New York. The company filed motions with the Bankruptcy Court to seek authorization to continue to operate its business as a "debtor in possession" under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code and the orders of the Bankruptcy Court. The company has filed a series of first day motions with the Bankruptcy Court that seek authorization to ensure that it can continue to conduct its business without interruption. These motions are designed primarily to minimize the effect of bankruptcy on the company’s operations. None of Rockley’s subsidiaries have filed voluntary petitions for relief under the Bankruptcy Code. The company also filed the Prepackaged Chapter 11 Plan of Reorganization of Rockley Photonics Holdings Limited and related Disclosure Statement. The company has sought expedited approval of the Plan as part of a comprehensive restructuring to de-lever the company’s consolidated balance sheet by eliminating existing debt and introducing a new capital structure which will provide approximately $35M of cash for ongoing operations. The company cautions that trading in the company’s securities during the pendency of the Chapter 11 Case is highly speculative and poses substantial risks. Trading prices for the company’s securities may bear little or no relationship to the actual recovery, if any, by holders of the company’s securities in the Chapter 11 Case.