10:47 AM EDT, 10/29/2024 (MT Newswires) -- TPG's (TPG) Exactech unit filed for Chapter 11 bankruptcy amid "unsustainable liabilities" from lawsuits involving settlements for packaging recalls for knee and hip replacement devices.

A group of existing investors will serve as a "stalking horse" bidder to buy company assets and provide $85 million of additional financing to back operations.

"We have determined that a court-supervised sale is the best path forward for our stakeholders," Exactech Chief Executive Officer Darin Johnson said Tuesday in a statement.

"We take our commitment to patient well-being very seriously and have provided substantial out-of-pocket patient reimbursements and surgeon support for related expenses," the CEO said.

The voluntary reorganization is before the US Bankruptcy Court for the District of Delaware and "and is subject to higher and better bids," Exactech said.

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