Judge Thomas M. Horan of the U.S. Bankruptcy Court for the District of Delaware has confirmed Pear Therapeutics, Inc.’s  and Pear Therapeutics (US) Inc’s Joint Chapter 11 Plan of Liquidation. Pear filed for Chapter 11 protection in April 2023, listing $5.7 million in cash and over $500 million in other assets mostly consisting of net operating losses and intercompany receivables, and $130 million in total liabilities on a combined basis. 

Foley Hoag LLP represented Pear as counsel providing comprehensive support and guidance in all aspects of the Chapter 11 cases , including bankruptcy strategy, settling claims of the prepetition secured lender, asset disposition, patient records safeguarding, claims adjudication, winddown of the estates and the plan process. Less than two years after Pear Therapeutics went public in a SPAC deal worth $1.6 billion its assets were sold in a hybrid remote and in-person auction facilitated by Foley Hoag in its New York office in May 2023 to four distinct purchasers for just over $6 million. Through work with Pear’s leadership and advisors, Foley Hoag conducted various other asset and reached a global settlement with former employees claiming violations of the Worker Adjustment and Retraining Notification (WARN) Act and California WARN Act.

“With our support, Pear reached an agreement with the Official Committee of Creditors and Warn Act claimants culminating in a plan of liquidation proposed jointly with the Committee,” said Alison Bauer, Co-Chair of the Bankruptcy and Restructuring Practice. “Through these Chapter 11 proceedings, we have reached the optimal and most cost-effective outcome to orchestrate the sale of Pear’s assets to external parties, achieve settlement with former employees and provide a meaningful distribution to creditors.”

Accompanying Bauer, the Foley Hoag team composing Pear’s counsel includes restructuring support from Jiun-Wen Bob Teoh and Christian A. Garcia; M&A support from Jen Audeh, Nitzan Fisher Conforti, Adrian Maraziti; intellectual property counseling from Erik Huestis; capital markets advice from Stacie Aarestad and Anna Snook; and paralegal support from Rachel Kelly, along with many other specialists. In addition, Gibbons P.C. served as co-restructuring counsel and Sonoran Capital Advisors provided financial advisory services. 

Pear Therapeutics, Inc., formerly based in Boston, Massachusetts, pioneered the development and commercialization of prescription digital therapeutics (PDTs), a novel class of software-based medicines. The company’s product portfolio consisted of three FDA-authorized products: reSET®,  reSET-O®, and Somryst®.