Enters into an asset purchase agreement with SF2 GSW, LLC (“SF2”), an affiliate of Stage Equity Partners, for a “stalking horse” offer for the sale of substantially all of the company’s SaaS business, which offer is subject to to higher and better offers through a competitive auction process.
Submit voluntary Subchapter V requests for Chapter 11 protection to implement a restructuring and sale of most of its software assets.
GetSwift will continue its activities during the sales process.
Company continues to evaluate other strategic alternatives to maximize the value of all assets to stakeholders
GetSwift Technologies Limited, a leading provider of last mile SaaS logistics technology and services, announced that it has initiated a voluntary Subchapter V filing within the Chapter 11 process to maximize value for all stakeholders. As part of this process, the company has acquired for itself and its operating subsidiary GetSwift, Inc. voluntary reorganization petitions filed with the United States Bankruptcy Court for the Southern District of New York, and plans to seek recognition of the Chapter 11 cases in the Ontario Superior Court of Justice (Commercial List) pursuant to the Companies’ Creditors Arrangement Act (Canada) (“CCAA”). In addition, GetSwift Limited, the company’s Australian subsidiary, went into liquidation on July 29, 2022, with KordaMentha’s Kate Conneely and Rahul Goyal being the appointed liquidators.
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“This reorganization is the best way to ensure business continuity for our customers,” said Joel Macdonald, co-founder and acting CEO of GetSwift. “The Subchapter V Process provides an efficient and equitable mechanism to maximize value for all stakeholders.”
As part of the reorganization process, the Company will file the usual “First Day” motions to allow it to continue its normal business. GetSwift plans to pay its employees in the usual way and continue their primary benefits without interruption. The company expects to receive bankruptcy court approval for all of these routine requests.
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The company has also notified the NEO Exchange of the filing and it is expected that all trading in its common stock will be suspended in accordance with the rules of the NEO Exchange.
Under Section 363 of the US bankruptcy law, subject to bankruptcy court approval, SF2 will serve as the “stalking horse” bidder, setting a minimum value for virtually all of the company’s SaaS assets. In order to maximize the purchase price, the proposed bidding procedures would allow additional qualified potential bidders to participate in an auction process. SF2 and the company are business parties and the proposed transaction described in the asset purchase agreement between the company and SF2 is not a related party transaction.
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