Clearside exits Chapter 11 with Steel Partners backing, $3M credit line
What's the deal? Clearside Biomedical has emerged from Chapter 11 bankruptcy, with Steel PartnersDealroom has a profile for this one. Try Dealroom → sponsoring its reorganization plan and providing a $3 million senior secured revolving credit facility for working capital and general corporate purposes. The plan, confirmed by the United States Bankruptcy Court for the District of Delaware, became effective on the closing date.
Why now? Clearside commenced its Chapter 11 case on November 23, 2025. It has now satisfied or waived all conditions to the plan's effectiveness, completing the restructuring.
How the ownership breaks down: An affiliate of Steel Partners bought newly issued common shares representing about 30% of the company's aggregate economic interest and 80% of its total voting power, on an as-converted, fully diluted basis. Holders of existing common stock retained roughly 70% of the economic interest, subject to dilution and customary adjustments. Proceeds were reserved to satisfy allowed claims.
What's the endgame? Beyond the credit facility, Steel Partners provided new equity capital and credit support to the reorganized company, giving Clearside working capital to continue operating post-restructuring.
The signal: A minority economic stake paired with majority voting control is a familiar sponsor-led restructuring: existing shareholders keep most of the upside on paper, while the new backer takes the wheel.
Read more: ABF Journal
