8-K: Zynex Amends DIP Loan, Files Reorganization Plan Amid Bankruptcy

Zynex, Inc. has amended its debtor-in-possession financing and filed a joint plan of reorganization as it navigates Chapter 11 bankruptcy proceedings.

Summary

• Zynex, Inc. and certain subsidiaries initiated voluntary Chapter 11 bankruptcy cases on December 15, 2025, in the U.S. Bankruptcy Court for the Southern District of Texas.
• The company's common stock was delisted from Nasdaq on December 17, 2025, suspended from trading on December 24, 2025, and now trades on the Pink Limited Market under the symbol ZYXIQ.
• On January 14, 2026, Zynex entered into the first amendment to its $22.3 million delayed draw senior secured debtor-in-possession (DIP) term loan facility.
• The amendment extends certain milestones related to the entrance of the final DIP Order, the bidding procedures order, and the order granting approval of certain compensation plans.
• Also on January 14, 2026, the company filed its Combined Disclosure Statement and Joint Plan of Reorganization, consistent with a Restructuring Support Agreement dated December 15, 2025.
• The Plan of Reorganization contemplates an equity transaction with a Plan Sponsor, to be determined through a parallel Sale Process, and provides for the distribution of any Excess Sale Proceeds.

Sentiment

Score: 1

Explanation: The company is in Chapter 11 bankruptcy, has been delisted from Nasdaq, and explicitly warns of significant losses and potential cancellation of common stock for equity holders. This indicates an extremely negative financial situation.

Negatives

• The company is currently operating under Chapter 11 bankruptcy protection.
• Zynex's common stock has been delisted from Nasdaq and now trades on the Pink Limited Market, indicating a significant decline in market standing.
• The company explicitly cautions that trading in its securities is highly speculative and expects current equity holders to experience a significant loss on their investment, with a likelihood of common stock cancellation.

Risks

• Trading in the company's securities is highly speculative and may bear little or no relationship to actual recovery for holders.
• Current equity holders are expected to experience a significant loss on their investment, with a likelihood of common stock cancellation.
• The company may not be able to obtain Court approval for motions, requisite stakeholder approval, or confirmation of the Plan of Reorganization.
• The Chapter 11 Cases could have adverse effects on the company and its various constituents.
• There is uncertainty regarding the impact of Court rulings and the ultimate outcome and duration of the Chapter 11 Cases.
• Restrictions on the company's ability to pursue its business strategies while the Chapter 11 Cases are pending.
• Risks associated with third-party motions in the Chapter 11 Cases.
• Potential adverse effects of the Chapter 11 Cases on the company's liquidity.
• Uncertainty regarding the company's ability to retain key personnel and management.
• Continuing risks associated with the company's ability to achieve its goals and continue as a going concern.

Future Outlook

The company's future outlook is centered on successfully navigating the Chapter 11 bankruptcy process, which includes obtaining Court approval for its Plan of Reorganization. This plan involves an equity transaction with a Plan Sponsor and the potential distribution of Excess Sale Proceeds. However, the company explicitly warns that current equity holders are expected to face significant losses, with a high likelihood of their common stock being canceled.

Management Comments

• The company is actively working through the Chapter 11 process, including amending its DIP financing and filing a Plan of Reorganization, as evidenced by the actions taken by its Chief Financial Officer, Vikram Bajaj.

Industry Context

This announcement reflects a company in the medical device sector facing severe financial distress, leading to bankruptcy and delisting. Such events typically indicate significant operational or market challenges specific to the company, rather than broad industry trends, though the broader economic environment can exacerbate individual company weaknesses.

Comparison to Industry Standards

• The delisting from Nasdaq and subsequent trading on the Pink Limited Market (OTC Markets Group) is a significant deviation from standard public company operations, indicating a failure to meet listing requirements and a substantial loss of investor confidence compared to industry peers.
• Commencing Chapter 11 bankruptcy proceedings is a severe financial event, placing the company far outside the operational and financial health benchmarks of stable, publicly traded medical device companies like Medtronic (MDT), Abbott Laboratories (ABT), or Boston Scientific (BSX), which maintain strong balance sheets and market access.

Legal Proceedings

• The company and certain subsidiaries are involved in voluntary Chapter 11 bankruptcy cases (In re Zynex, Inc., et al., Case No. 25-90810) in the United States Bankruptcy Court for the Southern District of Texas.

Stakeholder Impact

• Shareholders: Expected to experience a significant loss on their investment, with a high likelihood of common stock cancellation.
• DIP Lenders: Provided $22.3 million in senior secured financing, indicating a primary position in the restructuring.
• Employees: Milestones related to Key Employee Incentive Plan (KEIP) and Key Employee Retention Plan (KERP) suggest efforts to retain critical personnel during bankruptcy.

Next Steps

• Obtain Court approval for motions in the Chapter 11 Cases.
• Secure approval from requisite stakeholders for the Plan of Reorganization.
• Achieve confirmation of the Plan by the Bankruptcy Court.
• Execute an equity transaction with a Plan Sponsor through a parallel Sale Process.
• Complete the deregistration of common stock under Section 12(b) of the Securities Exchange Act of 1934.

Key Dates

Recommendation

The company is in Chapter 11 bankruptcy, its stock has been delisted from Nasdaq and moved to the Pink Limited Market, and it explicitly warns that current equity holders are expected to experience a significant loss, with the likelihood of common stock cancellation. This indicates a near-total loss for existing shareholders, making a 'strong sell' recommendation appropriate for any remaining positions.

Keywords

Chapter 11, Bankruptcy, DIP financing, Reorganization Plan, Delisting, Nasdaq, ZYXIQ, Restructuring, Debtor-in-Possession