Avinger Inc. (AVGR) has disclosed a new risk, in the Litigation & Legal Liabilities category.
Avinger Inc. faces a critical business risk if it fails to obtain or successfully exit Chapter 11 Bankruptcy protection. Should Chapter 11 proceedings prove unviable, Avinger Inc. may be compelled to file for Chapter 7 Bankruptcy, leading to the liquidation of assets under a court-appointed trustee’s supervision. The liquidation process is expected to diminish stakeholder returns significantly compared to Chapter 11 reorganization, due to the rapid and distressed sale of assets rather than an orderly restructuring. This scenario highlights the precarious financial situation Avinger Inc. is navigating, with potential severe consequences for its continuity and stakeholders.
The average AVGR stock price target is $5.00, implying 71.23% upside potential.
To learn more about Avinger Inc.’s risk factors, click here.
