Vewd Software AS announced that 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 the coronavirus and a shareholder dispute.
Vewd has agreed to a predefined reorganization with its senior lenders that involves debt for a share swap. The based in Oslo. The smart TV company said the restructuring process is not expected to impact the day-to-day operations of the company and that it expects to continue operating as usual.
“As we enter our next phase of growth in a very dynamic and fast-paced industry, it has become imperative that we improve our ability to invest in the accelerated deployment of our new products and solutions,” said Aneesh Rajaram, CEO of Vewd. . “We look forward to coming out of this process with a healthy balance sheet, allowing Vewd to continue on its growth trajectory within the evolving OTT industry. Our future owners have demonstrated a clear commitment to the long-term success of our business and our mission of enabling entertainment everywhere.
The lenders have agreed to provide $ 10 million in new financing that will keep Vewd operating during the process, which is expected to take less than 45 days.