IMRIS, Two Subsidiaries File For Chapter 11 Protection - Quick Facts

(RTTNews) - IMRIS Inc. (IMRS, IM.TO) said that the company, its subsidiary NeuroArm Surgical Ltd., and U.S. subsidiary, IMRIS, Inc. have each filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware.

As part of the filing, IMRIS plans to sell its business operations to an affiliate of Deerfield Management Company, L.P., subject to a marketing process and Court approval. The sale is expected to close sometime in late summer, 2015.

IMRIS has also secured a commitment for debtor-in-possession financing from Deerfield. In addition to IMRIS's ongoing cash flow, the DIP financing will ensure that the company is able to continue meeting its financial obligations throughout the Chapter 11 case. During this time, IMRIS intends to conduct a marketing process for its operating businesses.

IMRIS expects that Chapter 11 protection will enable it to conduct its business operations in the ordinary course during the interim.

IMRIS added that none of its other operating subsidiaries outside of the U.S. and Canada are subject to the Chapter 11 proceedings, and they will continue to operate in the ordinary course of their businesses.