April 11, 2023, 9:40 PM ET

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Pear Therapeutics, a company focused on developing and commercializing software-based medicines called prescription digital therapeutics, has voluntarily filed for Chapter 11 protection in the United States Bankruptcy Court for the District of Delaware. The company also announced its intention to pursue a sale of its business or assets under section 363 of the Bankruptcy Code.

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Evaluation of Strategic Alternatives

Before the filing of the Chapter 11 cases, the company evaluated a wide range of strategic alternatives to maximize value for all stakeholders. The company also significantly reduced operating expenses in an effort to cut costs.

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Continued Marketing Efforts and Sale of Business

The company intends to continue its marketing efforts to potential purchasers interested in specific assets while seeking a sale of the whole business. Any sales will be subject to review and approval by the Bankruptcy Court and compliance with bidding procedures to be approved by the Bankruptcy Court.

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Scaled-Down Operations During Chapter 11

Pear Therapeutics intends to continue scaled-down operations during the Chapter 11 as it seeks to execute an expedited sale process. Having reached a settlement prior to the filing with its lender, Pear intends to use available cash to fund post-petition operations and costs in the ordinary course of its business.

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First Day Motions

The Debtors intend to file various "first day"motions with the Bankruptcy Court requesting customary relief that will enable them to transition into Chapter 11 without material disruption to their ordinary course operations. Such motions are typical in the Chapter 11 process,and the Debtors anticipate that they will be heard in the first few days of their Chapter 11 cases.

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Representation

Pear Therapeutics is represented by Foley Hoag LLP as counsel, Gibbons P.C. as co-counsel, Sonoran Capital Advisors as restructuring advisor, and MTS Health Partners, L.P. as restructuring investment banker.

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Members of LevelFields received the alert of this event on April 7, 4:15 PM ET

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