SmileDirectClub Inc. shares plummeted in the extended session Friday after the company said it had voluntarily filed for Chapter 11 bankruptcy protection as founders seek to recapitalize the teeth-straightening business. SmileDirectClub shares
which had been halted while up 0.9% in after-hours trading pending news, promptly dropped as much as 85% when trading in the stock reopened.
The stock had closed Friday’s regular session down 6.6% at 42 cents a share, giving the company a market capitalization of just under $170 million. In a statement late Friday, SmileDirectClub said that its “founders have committed to invest at least $20 million to bolster the company’s balance sheet and to protect its near- and long-term financial health,” and that “up to $60 million of additional capital is available upon satisfaction of certain condition …