(Bloomberg) — CalAmp Corp., which develops business software designed to track vehicles and improve company logistics, has filed bankruptcy to complete a lender-backed plan to cut debt.
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Publicly traded CalAmp filed Chapter 11 on Monday in Delaware to execute a restructuring deal where certain owners of its secured notes will swap out debt for 100% of the equity in the reorganized business. Other CalAmp creditors would be fully repaid in cash, the company said in court papers.
CalAmp estimated its assets are worth about $281.2 million and that its liabilities are worth about $355.4 million. Shares of the company dropped 54% this year as of Friday’s close.
Before filing bankruptcy, CalAmp said its financial performance had been deteriorating and that it faced “imminent defaults” under its lending documents. The Irvine, California-based company said it also worried about its stock potentially being delisted from Nasdaq, which would have likely triggered a default, according to court documents.
In response, the company retained Oppenheimer & Co. as a financial adviser and investment banker to negotiate with lenders. CalAmp has already started soliciting creditor votes on its debt-cutting plan and will seek bankruptcy court approval of the restructuring on July 11, according to court documents.
The case is CalAmp Corp., number 24-11136, in the US Bankruptcy Court in Delaware (Wilmington).
–With assistance from Claire Boston.
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