Zynex, Inc. (ZYXIQ) Announces Bankruptcy Court Approval of Plan of Reorganization – Key Details for Investors

Summary of Key Developments

• Bankruptcy & Court Approval: Zynex, Inc. (“the Company”) announced that the United States Bankruptcy Court for the Southern District of Texas has approved the Third Amended Combined Disclosure Statement and Joint Plan of Reorganization, confirming the Company’s plan to emerge from Chapter 11 bankruptcy.
• Effective Date Target: The Company expects the Plan to become effective by March 31, 2026, but cautions that there is no assurance of the timeline or certainty of effectiveness.
• Equity Cancellation: All existing common stock will be cancelled, extinguished, and receive no recovery under the Plan.
• New Ownership Structure: Upon effectiveness, 100% of the new common shares of the reorganized Zynex will be issued to an entity owned by the DIP (Debtor in Possession) Lenders, subject to dilution by a Management Incentive Plan.
• Drastic Share Reduction: The Company expects to reduce its outstanding shares from 30,781,021 to approximately 1,000 New Common Shares, all owned by the Plan Sponsor.
• Delisting & Deregistration: Zynex common stock was delisted from Nasdaq, and deregistration under Section 12(b) of the Exchange Act will become effective shortly after the Form 25 filing.
• Trading Warning: The Company cautions that trading in its securities is highly speculative and poses substantial risks, as current equity holders are expected to experience a significant or total loss of investment.
• Plan Details: The Plan provides for the settlement of all claims, new financing agreements, and the establishment of a GUC (General Unsecured Creditors) Trust.
• Confirmation Order & Exhibits: The Court’s order and full Plan are available for review, including the Liquidation Analysis and all related Plan documents.

Detailed Breakdown of Material Terms

1. Bankruptcy and Plan Confirmation

Zynex, Inc. and its affiliated debtors filed for Chapter 11 bankruptcy. On March 19, 2026, the Bankruptcy Court confirmed their Third Amended Combined Disclosure Statement and Joint Plan of Reorganization. This Plan outlines how claims and interests will be treated and provides the legal framework for the Company’s emergence from bankruptcy.

2. Treatment of Equity – Shareholder Impact

This is the most price-sensitive and critical news for shareholders:

• All outstanding shares of Zynex common stock will be discharged, cancelled, released, and extinguished with no recovery for current holders.
• After the Effective Date, only approximately 1,000 New Common Shares will be outstanding, all owned by the Plan Sponsor (an entity of the DIP Lenders).
• There will be no distribution or value for current public shareholders.

This means that if you currently hold Zynex shares (trading under ZYXIQ), you will lose your entire investment upon the Plan’s effectiveness.

3. New Ownership, Governance, and Credit Facilities

• A new credit agreement will be entered into with the Plan Sponsor as the lender.
• The Plan provides for the appointment of a new board of directors and officers for the reorganized Company.
• The Plan also includes the establishment of a GUC Trust for the benefit of general unsecured creditors.

4. Delisting and Deregistration

Zynex’s common stock was previously traded on Nasdaq. As of December 17, 2025, the Company filed a Form 25 with the SEC to delist the stock. The deregistration will become effective 90 days after the filing (or sooner if determined by the SEC). Now, ZYXIQ trades on the OTC Markets but will have no value for current holders after the Plan is effective.

5. Trading Warning and Risks

The Company explicitly warns that trading in its securities during the bankruptcy process is highly speculative and risky. The market price of ZYXIQ may bear no relation to the eventual recovery (which will be zero for current equity holders). The Company expects existing equity holders to experience a total loss if the restructuring is completed.

6. Other Material Details for Creditors and Stakeholders

• The Plan includes the settlement of all claims, revised organizational documents, and a Management Incentive Plan that could dilute the Plan Sponsor’s new equity.
• The Plan and related exhibits, including a liquidation analysis, are available for public review.
• The Company incorporated its latest asset and liability information from its September 30, 2025, 10-Q filing.

Potential Share Price Impact

This news is extremely negative and price-moving for Zynex, Inc. public shareholders. The cancellation of all existing shares means that, upon the Effective Date, ZYXIQ shares will be worthless. Investors should take immediate note and exercise extreme caution regarding any trading activity in ZYNEX securities.

Forward-Looking Statements and Risks

The Company notes that all forward-looking statements, including those about the Plan timeline and effectiveness, are subject to risks and uncertainties, including court approvals, implementation challenges, potential appeals, and other risks detailed in the Company’s SEC filings.

Access to Court Documents

For more information and access to filings, motions, and orders, investors can visit: https://dm.epiq11.com/Zynex

Disclaimer: This article is for informational purposes only and does not constitute investment advice. The information is based on official filings and court documents as of March 20, 2026. Investors are strongly urged to review the full bankruptcy filings and consult with their financial advisor. The Company’s circumstances may change, and the outcome of the bankruptcy process could be different from current expectations. Trading in bankruptcy securities is highly speculative and can result in total loss.

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