ZYNEX INC 8-K

What Happened

• Zynex Inc. (ZYXIQ) filed an 8-K dated March 26, 2026 reporting its emergence from Chapter 11 under a confirmed reorganization plan. Under the Plan, all prior outstanding equity was canceled and extinguished, and the Plan Sponsor (Altivera Medical Holdings LLC) received 1,000 newly issued shares of common stock and now holds 100% of the common stock. The Company entered into a $10.0 million senior secured Exit Credit Agreement (New Term Loan Facility) and discharged its prior debtor-in-possession (DIP) facility and convertible senior notes pursuant to the Plan.

Key Details

• $10.0 million New Term Loan Facility: senior secured term loans maturing April 20, 2034; interest paid-in-kind at the applicable federal rate; obligations guaranteed by most subsidiaries and secured by substantially all assets.
• Conversion feature: outstanding obligations under the New Term Loan Facility will automatically convert into common stock on the earlier of the maturity date and the date all payments under the Zynex Non‑Prosecution Agreement are made, at a conversion rate based on fair market value at that time.
• Cancellations and payoffs: the $22.3 million DIP Facility and the $60.0 million of 5.00% Convertible Senior Notes due 2026 were discharged and related liens released on the Effective Date.
• Governance and charter changes: the Company adopted amended and restated articles and bylaws (authorizing up to 1,000,000 shares of common stock, $0.001 par), appointed new directors (Vikram Bajaj and John Bibb to the Company’s board), and the Plan Sponsor’s directors serve as the Plan Sponsor’s board; officers remain in their prior roles.

Why It Matters

• Existing public shareholders were canceled and effectively wiped out under the reorganization; control of the reorganized company is now concentrated with the Plan Sponsor.
• The capital structure has been materially reset: prior DIP debt and convertible notes were eliminated and replaced by a secured $10.0M term loan that can convert into equity, which creates potential future dilution if conversion occurs.
• The new loan is secured and guaranteed by subsidiaries, which strengthens creditor protections but may limit future financing flexibility (prepayment and indebtedness restrictions apply).
• Governance and charter changes set the framework for the reorganized company’s control, voting, and corporate procedures going forward.