iLearningEngines, Inc., a prepackaged software services company, announced on Monday the engagement of CR3 Partners, LLC to provide a Chief Restructuring Officer (CRO) and supporting personnel as part of its ongoing Chapter 11 bankruptcy proceedings. The agreement, effective December 27, 2024, involves Senior Managing Director/Partner of CR3, Winston Mar, serving as the CRO to oversee the company's restructuring efforts.
The Bethesda, Maryland-based company, which previously operated under the name Arrowroot Acquisition Corp., filed for Chapter 11 protection on December 20, 2024, for itself and its affiliated entity, iLearningEngines Holdings, Inc. Subsequently, on December 27, 2024, iLearningEngines FZ-LLC joined the proceedings. The cases are being administered in the United States Bankruptcy Court for the District of Delaware under the caption In re iLearningEngines, Inc., Case No. 24-12826.
On January 9, 2024, the company's subsidiary in2vate, LLC also filed a Chapter 11 petition. A hearing is scheduled for January 13, 2025, where the Bankruptcy Court is expected to consider additional motions to enable the company's continued operation during the restructuring process.
The motions set for the January 13 Hearing include requests to use cash collateral, pay pre-petition employee obligations, continue employee benefit programs, and maintain existing insurance coverage, among others.
Mr. Mar, who joined CR3 in April 2022, will be tasked with overseeing the business plan, financial reporting, and liquidity matters to maximize valuation during iLearningEngines' restructuring. He will remain employed by CR3, with the firm compensated at a rate of $1,295 per hour for his services.
As the company cautions, trading in its securities is highly speculative and poses substantial risks during the Chapter 11 proceedings. The outcome of the bankruptcy cases could lead to significant or complete losses for the shareholders.
This information is based on a press release statement and filings in the Chapter 11 Cases, which are available for a fee on the Bankruptcy Court's website or for inspection at the Clerk of the United States Bankruptcy Court for the District of Delaware. The company has not filed or incorporated this information into any other reports under the Securities Act or the Exchange Act.
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