Cutera Takes Steps to Strengthen Financial Foundation and Position the Company for Long-Term Success
Cutera (CUTR) has announced a major financial restructuring plan through a pre-packaged Chapter 11 filing, aimed at strengthening its balance sheet. The plan, supported by 74% of the company's noteholders, will reduce debt by nearly $400 million (over 90%) and secure $65 million in new funding from existing lenders.
The company expects to complete the court-supervised process within 60 days, during which it will continue normal operations globally. Following the restructuring, Cutera will transition to a private company, backed by a consortium of investment firms. The restructuring only affects U.S. entities, with international operations remaining unchanged.
The company has filed for vendor payment approval to maintain normal business relationships and continue providing aesthetic and dermatology solutions without disruption.
Cutera (CUTR) ha annunciato un importante piano di ristrutturazione finanziaria attraverso una richiesta di Chapter 11 preconfezionata, mirata a rafforzare il proprio bilancio. Il piano, sostenuto dal 74% dei detentori di obbligazioni della società, ridurrà il debito di quasi 400 milioni di dollari (oltre il 90%) e garantirà 65 milioni di dollari in nuovo finanziamento da parte dei creditori esistenti.
La società prevede di completare il processo supervisionato dal tribunale entro 60 giorni, durante i quali continuerà le normali operazioni a livello globale. Dopo la ristrutturazione, Cutera passerà a essere una società privata, sostenuta da un consorzio di società di investimento. La ristrutturazione riguarda solo le entità statunitensi, mentre le operazioni internazionali rimarranno invariate.
La società ha presentato una richiesta di approvazione per i pagamenti ai fornitori per mantenere normali relazioni commerciali e continuare a fornire soluzioni estetiche e dermatologiche senza interruzioni.
Cutera (CUTR) ha anunciado un importante plan de reestructuración financiera a través de una solicitud de Capítulo 11 preempaquetada, destinada a fortalecer su balance. El plan, respaldado por el 74% de los tenedores de notas de la compañía, reducirá la deuda en casi 400 millones de dólares (más del 90%) y asegurará 65 millones de dólares en nuevo financiamiento de los prestamistas existentes.
La empresa espera completar el proceso supervisado por el tribunal en un plazo de 60 días, durante el cual continuará con sus operaciones normales a nivel global. Tras la reestructuración, Cutera se convertirá en una empresa privada, respaldada por un consorcio de firmas de inversión. La reestructuración solo afecta a las entidades de EE. UU., mientras que las operaciones internacionales permanecerán sin cambios.
La empresa ha solicitado la aprobación de pagos a proveedores para mantener relaciones comerciales normales y seguir proporcionando soluciones estéticas y dermatológicas sin interrupciones.
Cutera (CUTR)는 재무 구조조정 계획을 발표했습니다. 이는 사전 패키지 챕터 11 신청을 통해 이루어지며, 재무 상태를 강화하는 데 목적이 있습니다. 이 계획은 회사의 채권자 74%의 지지를 받았으며, 부채를 거의 4억 달러 (90% 이상) 줄이고 기존 대출자들로부터 6500만 달러의 신규 자금을 확보할 것입니다.
회사는 60일 이내에 법원 감독 하에 있는 프로세스를 완료할 것으로 예상하며, 이 기간 동안 전 세계에서 정상적인 운영을 계속할 것입니다. 구조조정 후 Cutera는 투자 회사들의 컨소시엄에 의해 지원되는 사기업으로 전환될 것입니다. 구조조정은 미국 내 기업에만 영향을 미치며, 국제 운영은 변경되지 않습니다.
회사는 정상적인 비즈니스 관계를 유지하고 중단 없이 미용 및 피부과 솔루션을 제공하기 위해 공급업체 결제 승인을 신청했습니다.
Cutera (CUTR) a annoncé un important plan de restructuration financière à travers un dépôt de chapitre 11 préemballé, visant à renforcer son bilan. Le plan, soutenu par 74 % des créanciers obligataires de l'entreprise, réduira la dette de près de 400 millions de dollars (plus de 90 %) et garantira 65 millions de dollars de nouveaux financements de la part des prêteurs existants.
L'entreprise s'attend à terminer le processus supervisé par le tribunal dans un délai de 60 jours, période durant laquelle elle continuera ses opérations normales à l'échelle mondiale. Suite à la restructuration, Cutera deviendra une entreprise privée, soutenue par un consortium de sociétés d'investissement. La restructuration n'affecte que les entités américaines, tandis que les opérations internationales resteront inchangées.
L'entreprise a déposé une demande d'approbation des paiements aux fournisseurs pour maintenir des relations commerciales normales et continuer à fournir des solutions esthétiques et dermatologiques sans interruption.
Cutera (CUTR) hat einen umfassenden Finanzrestrukturierungsplan angekündigt, der durch einen vorverpackten Chapter-11-Antrag eingeleitet wird, um die Bilanz zu stärken. Der Plan, der von 74% der Anleihegläubiger des Unternehmens unterstützt wird, wird die Schulden um fast 400 Millionen Dollar (über 90%) reduzieren und 65 Millionen Dollar an neuer Finanzierung von bestehenden Kreditgebern sichern.
Das Unternehmen erwartet, den gerichtlichen Prozess innerhalb von 60 Tagen abzuschließen, während es weltweit weiterhin normal operiert. Nach der Restrukturierung wird Cutera zu einem privaten Unternehmen übergehen, das von einem Konsortium von Investmentfirmen unterstützt wird. Die Restrukturierung betrifft nur US-Einheiten, während die internationalen Operationen unverändert bleiben.
Das Unternehmen hat einen Antrag auf Genehmigung von Lieferantenzahlungen eingereicht, um normale Geschäftsbeziehungen aufrechtzuerhalten und weiterhin ästhetische und dermatologische Lösungen ohne Unterbrechung anzubieten.
- Debt reduction of $400M (90% of current debt)
- Secured $65M in new funding
- 74% of noteholders support the restructuring
- Operations continue without disruption
- Quick 60-day restructuring timeline
- Filing for Chapter 11 bankruptcy protection
- Company will be delisted and go private
- Only US entities affected, creating operational complexity
Insights
Cutera's announcement represents a severe negative development for existing shareholders as the company has filed for Chapter 11 bankruptcy protection. While management frames this as strengthening the financial foundation, the pre-packaged bankruptcy will effectively wipe out existing shareholders as the company transitions to private ownership under its lenders.
The restructuring will reduce debt by
This filing was likely unavoidable given Cutera's unsustainable debt burden. The company's
For investors, this represents a total loss scenario with no meaningful recovery expected. When companies emerge from bankruptcy as private entities with lenders taking control, original equity is typically rendered worthless. The
Enters into agreement to reduce debt by nearly
Implementing pre-packaged financial restructuring plan with strong support of lenders, expected to emerge expeditiously within 60 days
Continues to operate as usual and provide best-in-class aesthetic and dermatology solutions to customers
Through the transaction, Cutera will reduce its debt by nearly
“Cutera has established a legacy of premium engineering, innovation, and service, and we are constantly evolving to better meet the needs of our customers and their patients,” said Taylor Harris, CEO of Cutera. “There is clear momentum underway across the business, and today we are taking an important step that will enable us to continue to execute on our growth initiatives and pursue our mission with a much stronger capital structure to support us. We are pleased to have the confidence of our lenders, who are aligned with our vision and invested in our future success. We thank our customers and partners for their continued support, and we are grateful to our employees for their commitment to Cutera. We look forward to continuing to innovate, serve our customers, and improve patient lives for many years to come.”
Cutera has negotiated and solicited votes on its restructuring plan in advance and expects to complete this process quickly and efficiently, within 60 days. At the end of the process, Cutera will be a private company, with a much stronger capital structure and the backing of a large consortium of leading investment firms.
The Company has filed a request with the Court that will allow it to make timely payments to vendors in full under normal terms for goods and services delivered both before and after the filing. Cutera expects to receive approval for this request.
The Company’s entities located outside of the
Additional information about Cutera’s restructuring is available at https://cutera.com/strengtheningcutera. Court filings and other information regarding the case can be found at https://www.veritaglobal.net/cutera or by contacting Verita, the Company’s noticing and claims agent, at (888) 788-0109 (for toll-free
Advisors
Cutera is advised in this matter by Ropes & Gray LLP and Hunton Andrews Kurth LLP as legal counsel, Houlihan Lokey as investment banker, and FTI Consulting as financial advisor. The group of the Company’s lenders is advised in this matter by Paul, Weiss, Rifkind, Wharton & Garrison LLP as legal counsel and Centerview Partners as investment banker.
About Cutera, Inc.
Cutera is a leading provider of aesthetic and dermatology solutions for practitioners worldwide. For over 25 years, Cutera has strived to improve lives through medical aesthetic technologies that are driven by science and powered through partnerships. For more information, call 1-888-4-CUTERA or visit Cutera.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250305098533/en/
Cutera Media:
Rose Temple / Evelyn Bubb
CuteraComms@fticonsulting.com
Source: Cutera, Inc.
FAQ
How much debt reduction will Cutera (CUTR) achieve through its restructuring plan?
How long is Cutera's (CUTR) Chapter 11 restructuring process expected to take?
Will Cutera (CUTR) remain a public company after the restructuring?
How much new funding will Cutera (CUTR) receive through this restructuring?
What percentage of Cutera's (CUTR) noteholders support the restructuring plan?
