Vewd To Strengthen Balance Sheet and Accelerate Development of Next-Gen Products

December 15, 2021 | Source: Vewd Software
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Oslo, Norway, — Vewd Software AS, the leading provider of OTT software solutions, today announced that it has come to an agreement with its senior lenders to position the company for continued success in the fast-changing world of Connected TV 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 reorganization under Chapter 11 of the United States Bankruptcy Code supported by 100% 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, LLC (collectively, “Vewd” or the “Company”) 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,” Mr. Rajaram continued.

The Company’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.

The Company 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, customers, vendors, and employees should expect no change or interruption in their interactions with Vewd. Consummation of the plan of reorganization is subject to approval of the Bankruptcy Court and other conditions of the plan and related transaction documents.

Additional Information

Ropes & Gray LLP is serving as legal advisor, Jefferies Group LLC is serving as investment banker and EY is serving as restructuring advisor to the Company in relation to the Restructuring Plan. Linklaters LLP is serving as legal advisor to North Haven Credit Partners II LP.

About Vewd Software

Vewd Software is the leading provider of OTT and hybrid TV solutions, connecting consumers anywhere to the content they love. By making OTT possible on almost 40 million connected devices each year, Vewd leads the way in defining the future of entertainment. Our suite of products and services are crafted to simplify complexity and offer solutions that unite the entire value chain, from silicon vendors to end-users. Market leaders such as Sony, Hisense, TPV, Vodafone, Sagemcom, and many more rely on Vewd products and services.

Forward-Looking Statements

This release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements that are not strictly historical statements constitute forward-looking statements and may often, but not always, be identified by the use of such words such as “expects”, “believes”, “intends”, “anticipates”, “plans”, “estimates”, “potential”, “possible”, or “probable” or statements that certain actions, events or results “may”, “will”, “should”, or “could” be taken, occur or be achieved. Forward-looking statements are based on current beliefs and expectations and involve certain assumptions or estimates that involve various risks and uncertainties that could cause actual results to differ materially from those reflected in the statements. These risks include, but are not limited to, the ability to confirm and consummate a plan of reorganization in accordance with the terms of the restructuring support agreement; risks attendant to the bankruptcy process, including the effects thereof on the Company’s business and on the interests of various constituents, the length of time that the Company might be required to operate in bankruptcy and the continued availability of operating capital during the pendency of such proceedings; risks associated with third party motions in any bankruptcy case, which may interfere with the ability to confirm and consummate a plan of reorganization, potential adverse effects on the Company’s liquidity or results of operations; increased costs to execute the reorganization. Readers should not place undue reliance on any such forward-looking statements, which are made only as of the date hereof. The Company has no duty, and assumes no obligation, to update forward-looking statements as a result of new information, future events or changes in the Company’s expectations.