Vewd Software, a provider of OTT software solutions, has come to an agreement with its senior lenders to position the company for continued success via a court supervised process that will result in deleveraging and improving its balance sheet.
The restructuring of its balance sheet will be facilitated through a debt for equity exchange pursuant to a prepackaged plan of reorganisation under Chapter 11 of the United States Bankruptcy Code supported by 100 per cent of the company’s senior lenders. To effectuate the balance sheet enhancements, Vewd Software AS and its affiliates – Last Lion Holdco AS and Vewd Software USA – filed voluntary Chapter 11 petitions with the United States Bankruptcy Court for the Southern District of New York. The financial restructuring process is expected to have no impact on the day-to-day operations of the Company and the Company expects to carry on business as usual.
“As we embark on our next phase of growth in a highly dynamic, fast-paced industry, it has become imperative that we boost our ability to invest into the accelerated roll-out of our new products and solutions,” said Vewd’s CEO Aneesh Rajaram. “We look forward to emerging from this process with a healthy balance sheet, empowering Vewd to continue its growth trajectory within the evolving OTT industry. Our future owners have demonstrated a clear commitment to our Company’s long-term success and our mission to enable entertainment everywhere.”
Vewd’s senior lenders have agreed to provide 10 million of new financing through a debtor in possession facility, subject to court approval. Combined with the Company’s operating cash flows, the new financing will provide sufficient liquidity for the Company to operate throughout the financial restructuring process, which is anticipated to last less than 45 days.
Vewd has filed several customary first day motions seeking to continue payment of employee wages & benefits and payment of certain vendors, among other things. As such, it says customers, vendors, and employees should expect no change or interruption in their interactions with Vewd. Consummation of the plan of reorganisation is subject to approval of the Bankruptcy Court and other conditions of the plan and related transaction documents.