CalAmp Corp. (NASDAQ:CAMP), a company specializing in radio and TV broadcasting and communications equipment, will transition to a privately held entity following the confirmation of its bankruptcy plan. The United States Bankruptcy Court for the District of Delaware confirmed the company's Chapter 11 restructuring plan on July 11, 2024.
The Irvine, California-based firm, which had its common stock delisted from the Nasdaq Global Select Market on June 12, 2024, filed for bankruptcy protection earlier on June 3, 2024. CalAmp's restructuring plan was part of a prepackaged agreement with its creditors.
Under the terms of the confirmed plan, all existing equity interests, including common stock and other equity rights, will be cancelled. Lynrock Lake Master Fund LP will acquire 100% of the new equity interests in exchange for the cancellation of its secured notes claims. The plan also stipulates that general unsecured claims will continue to be paid or disputed as normal, with no specific number of new equity interests reserved for future issuance.
The plan includes provisions for the continuation of CalAmp's day-to-day operations and the preservation of commercial and operational contracts. It also contains integrated compromises and settlements with various parties to facilitate the restructuring process. Additionally, the plan provides for releases and exculpations from certain claims and causes of action.
Post-emergence governance will see changes, with Cynthia Paul being the initial member of the reorganized board of directors. Current officers of CalAmp will remain in their roles following the effective date of the plan.
CalAmp's assets and liabilities as of the latest report are detailed in the company's Quarterly Report on Form 10-Q for the period ended November 30, 2023, which provides insight into the company's financial standing prior to the restructuring.
The forward-looking statements included in the company's SEC filings indicate that the bankruptcy and restructuring efforts are intended to address CalAmp's financial challenges and position the company for future operations. However, these statements are subject to risks and uncertainties, and actual outcomes may differ from current expectations.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.