Vewd Software AS has announced it has filed voluntary Chapter 11 petitions with the United States Bankruptcy Court for the Southern District of New York.
Court documents blame increased competition, the fallout from coronavirus and a shareholder dispute.
Vewd has agreed on a prepackaged reorganisation with its senior lenders that involves a debt for equity exchange. The Oslo-based. connected TV firm says the restructuring process is expected to have no impact on the day-to-day operations of the Company and it 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.”
Lenders have agreed to provide $10 million of new financing that will allow Vewd to continue operating during the process, which is expected to last less than 45 days.