Zynex (ZYXI) director loses all shares as Chapter 11 plan cancels equity
Rhea-AI Filing Summary
Zynex Inc director Michael D. Cress reported disposing of all his common stock holdings back to the company as part of its Chapter 11 restructuring. The filing shows issuer dispositions of 12,499 shares of restricted common stock and 82,501 shares of common stock, leaving him with zero shares.
According to the confirmed reorganization plan, all outstanding Zynex common shares, equity awards, options, warrants and related rights were cancelled for no consideration when the plan became effective on March 26, 2026. Existing shareholders received no recovery under this court-approved plan.
Positive
- None.
Negative
- Existing equity cancelled with no recovery: All outstanding Zynex common shares and equity awards were cancelled for no consideration under the confirmed Chapter 11 plan, leaving pre‑petition shareholders, including the reporting director, with no remaining ownership.
Insights
Form 4 confirms Zynex’s Chapter 11 plan wipes out existing equity.
The disclosure ties an insider’s share cancellation directly to Zynex’s confirmed Chapter 11 plan of reorganization. All outstanding common stock and equity-based awards, including options and warrants, were cancelled for no consideration when the plan became effective on March 26, 2026.
This means pre‑petition shareholders and award holders received no recovery under the plan, a typical outcome when creditors take control of the reorganized entity. The director’s position falling to zero shares illustrates that legacy equity has been fully eliminated under the court‑approved structure.
Insider Trade Summary
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Disposition | Common Stock (Restricted Stock Award) | 12,499 | $0.00 | $0.00 |
| Disposition | Common Stock | 82,501 | $0.00 | $0.00 |
Footnotes (1)
- F1. Pursuant to the Issuer's Third Amended Combined Disclosure Statement and Joint Chapter 11 Plan of Reorganization of Zynex, Inc. and Its Affiliated Debtors Pursuant to Chapter 11 of the Bankruptcy Code (the "Plan") which was confirmed by the United States Bankruptcy Court for the Southern District of Texas on March 19, 2026 and became effective on March 26, 2026, all outstanding shares of the Issuer's common stock (including shares of common stock issuable under equity awards granted under the Issuer's equity incentive plans) and all other options, warrants and other rights with respect thereto, have been cancelled for no consideration and of no further force and effect with no recovery under the Plan.
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