AVACEN, Inc. has voluntarily commenced a Chapter 11 bankruptcy process. The Carlsbad, California-based company, which serves as a medical device manufacturer, has listed several unsecured creditor claims in its petition.
Note: A Chapter 11 bankruptcy filing is a legal process that allows a business to reorganize its debts and restructure its obligations while continuing operations. Under Chapter 11, a debtor typically proposes a plan to repay creditors over time, subject to court approval. A Chapter 11 filing does not necessarily mean a business is closing or going out of business. For additional information, readers are encouraged to contact the business directly.
AVACEN, Inc. Files for Bankruptcy
Court records show that the company submitted its petition on August 13, 2026. Company CEO Thomas Muehlbauer signed the petition before it was filed.
The records on the PACER database classified AVACEN, Inc. as a small business debtor, adding that it opted for a Chapter 11, Subchapter V filing. Generally, this type of filing allows businesses to manage their bankruptcy requirements in a quicker and more affordable manner.
About the Company
Court filings show that AVACEN, Inc. currently operates as AVACEN Medical, a medical-device and wellness company from Carlsbad, California. Since it was founded in 2009, the company has been developing and manufacturing a range of noninvasive devices for pain relief, cardiovascular and stress diagnostics, and wellness.
The company website shows that its devices are FDA-cleared, drug-free, and are categorized under Class II medical devices. It adds that the AVACEN thermal therapy devices are provided to consumers and healthcare practitioners, with products for home, clinical, and wellness settings.
Case Related Details
Court records show that AVACEN, Inc. submitted a list of creditors with the largest unsecured claims. The list includes banks, lenders, law firms, service providers, landlords, and government agencies. Some creditors include Chase Bank, Shopify, Inc., Funding Futures, LLC, Greenberg Traurig, LLP, and JPS Engineering Corp.
The unsecured claims include loans, legal and engineering services, rent, taxes, insurance, internet services, and shipping costs. Some claims are written as disputed or unliquidated, meaning AVACEN does not agree with the debt or the final amount is not yet clear.
Attorney Steven E. Cowen of S.E. Cowen Law is representing the company in the court.
Here are summarized details from the Chapter 11 petition:
- Filing Date: August 13, 2026
- Court and Jurisdiction: U.S. Bankruptcy Court for the Southern District of California
- Type of Filing: Active, Voluntary Petition
- Chapter: 11, Subchapter V
- Case Number: 26-03535-CL11
- Estimated Assets: Between $10,000,001 and $50 million
- Estimated Liabilities: Between $1,000,001 and $10 million
- Estimated Creditors: 1-49
AVACEN, Inc.’s filing highlights financial obligations facing the company. Upcoming court decisions are expected to be crucial in helping it restructure amid these pressures.
