Imagyn Files Bankruptcy Reorganization Proposal

Imagyn Medical Technologies Inc. filed a bankruptcy reorganization plan Friday that would allow major creditor Credit Suisse First Boston Management Corp. to acquire a 75% stake in the Newport Beach designer of surgery products. Credit Suisse holds a majority of the company’s $110 million in notes, which will be replaced by new shares of common stock, the company said. Under the reorganization plan, secured creditors, employees and trade creditors who continue to provide goods and services would be paid in full from future revenues. But holders of common stock, warrants, options and debentures would not receive property, the Newport Beach company said Friday. Imagyn said it expects the court to consider the reorganization plan in September. Imagyn received financing from a group of its existing lenders in May. The company will use financing for normal business operations and will continue to pay normal employee salaries, wages and benefits. In May, three creditors representing a minority of holders of the senior subordinated notes moved to force the company into involuntary bankruptcy. Imagyn asked that the court convert the case into a voluntary Chapter 11 bankruptcy case. Imagyn designs and makes urological, gynecological and general surgery products.