Strōma Medical Corporation has completed its Chapter 11 reorganization. The company said its court-approved plan became effective on September 28, 2026. The Irvine-based medical device company filed a Chapter 11, Subchapter V petition in December 2025.
Strōma Medical Corporation Completes Chapter 11 Reorganization
The company announced on September 28 that its court-approved reorganization plan had become effective. The U.S. Bankruptcy Court for the District of Delaware approved the plan on September 10, 2026, bringing the company’s Chapter 11 restructuring to completion.
Strōma will continue operating with its current management under the court-approved plan. Existing shareholders will keep their equity interests and do not need to take any action. Their shares will remain outstanding and unchanged, with no changes to the number of shares or the rights attached to them. The plan also does not provide for the issuance of new securities.
General unsecured creditors were the only group allowed to vote on the plan. They voted to accept it, with no votes against it. Other groups, including shareholders, had their rights and interests left unchanged under the plan.
Former Bankruptcy Filing Details
Strōma Medical Corporation submitted a Subchapter V Chapter 11 bankruptcy petition on December 8, 2025. Proceedings took place in the U.S. Bankruptcy Court for the District of Delaware.
The filing listed estimated assets and liabilities of between $1 million and $10 million and classified the company as a small business debtor.
The medical device company shared reasons for the filing in its recent announcement. It said that the filing was made to preserve operating capital while resolving a lawsuit and a related insurance coverage dispute. The lawsuit was brought against it in 2020 by a former consultant and noteholder and resulted in a judgment entered in October 2025.
The judgment claim was resolved through the reorganization plan. The related insurance coverage matter is still to be completed.
Company’s Plans Following Reorganization
The Irvine-based company develops the Strōma Laser System, an ophthalmic laser platform intended to change eye color. According to the statement shared with WhatNow, the company said it plans to continue its clinical program in Germany and prepare for commercialization of its technology.
“Completion of our reorganization positions Strōma to move forward with its clinical program in Germany and prepare for commercialization,” said Afshin Nadershahi, MD, MBA, Chief Executive Officer of Strōma Medical Corporation. “We appreciate the support of our shareholders and creditors as we move forward.”
