Item 1.03Bankruptcy or Receivership.

As previously disclosed, on June 19, 2023, Surgalign Holdings, Inc. (the "Company") and certain of its direct and indirect subsidiaries (together with the Company, the "Debtors" and, after the Effective Date (as defined below), the "Wind-Down Debtors," as applicable) commenced voluntary proceedings under chapter 11 (the "Chapter 11 Cases") of the United States Bankruptcy Code in the United States Bankruptcy Court for the Southern District of Texas (the "Court"). The Chapter 11 Cases are being jointly administered under the caption In re Surgalign Holdings, Inc., et al., Case Nos. 23-90730 through 23-90737.

On September 27, 2023, the Court entered an order (the "Confirmation Order") confirming the Modified Combined Disclosure Statement and Joint Chapter 11 Plan of Surgalign Holdings, Inc. and its Affiliated Debtors (the "Plan"). A copy of the Confirmation Order, with a copy of the Plan as confirmed attached thereto, is attached as Exhibit 2.1 to this Form 8-K and is incorporated herein by reference. The Debtors expect that the effective date of the Plan will occur on October 2, 2023 (the "Effective Date").

The following is a summary of certain material features of the Plan. Any description of the terms of the Plan in this Form 8-K are qualified in their entirety by Exhibit 2.1 to this Form 8-K. Capitalized terms used but not defined herein shall have the meanings ascribed to such terms in the Plan.

Summary of the Plan

The Plan provides for the orderly wind down of the Debtors' Estates and the following treatment of Claims against and Interests in the Debtors:

● All holders of Secured Claims will receive in satisfaction of such claims payment in full in Cash, the collateral securing such claims or such other treatment rendering such claims Unimpaired.
● All holders of Priority Non-Tax Claims will receive in satisfaction of such claims payment in full in Cash or such other treatment rendering such claims Unimpaired.
● All holders of Allowed General Unsecured Claims will receive in satisfaction of such claims its pro rata share of Distributable Cash and the Wind-Down Debtor Assets, to effectuate distributions from the Wind-Down Debtors.
● All holders of INN Seller Notes Claims, Allowed Intercompany Interests and Section 501(b) Claims shall not be entitled to any Distribution on account of such claims and such claims shall be cancelled, released and extinguished and of no further force or effect.
● All Allowed Intercompany Claims and any shares, common stock, preferred stock, options, warrant, rights or other securities or interests in the Company shall be cancelled, released and extinguished.

The Plan also implements the procedures for resolving Disputed Claims against the Debtors and Wind-Down Debtors, as applicable. Certain reserves may be created by the Plan Administrator for purposes of resolving disputed claims and funding various costs and expenses associated with the administration of the Plan and the wind down of the Debtors' Estates.

The terms of the current members of the Company's board of directors will expire and its officers will be deemed to have resigned on the Effective Date and the duties of all such positions will vest in the Plan Administrator, who will serve as the sole officer and director of the Company after the Effective Date.

Information as to the assets and liabilities of the Company as of the most recent practicable date was included in the Debtors' Monthly Operating Report for the period from July 1, 2023 to July 31, 2023 filed with the Court on or before August 31, 2023.

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Surgalign Holdings Inc. published this content on 29 September 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 September 2023 22:00:29 UTC.