June 12, 2017
Violin Memory Inc.'s Chapter 11 Bankruptcy Case Confirmed by Delaware Judge
On April 18, 2017, Judge Laurie S. Silverstein entered an order confirming Violin Memory, Inc.’s (the “Debtor”) plan of reorganization (the “Plan”). The Debtor filed a voluntary petition under Chapter 11 of the Bankruptcy Code on December 14, 2016. Headquartered in Santa Clara, California, the Debtor is a developer and supplier of differentiated flash-based storage systems that service the high-speed applications and complex network infrastructures of sophisticated worldwide enterprises.
The Plan confirmation follows a deal based on a plan support agreement (the “PSA”) that was approved by the Court on February 8, 2017. Pursuant to the PSA, the Debtor was sold for $23 million to VM Bidco LLC, an affiliate of Quantum Partners LP (“QP”). The sale price consists of (i) an $8 million debtor-in-possession financing which will convert into an exit facility, and (ii) $15 million in cash for recoveries under the Plan in which QP will receive all equity interests in the reorganized Debtor. The Plan, which was accepted by more than 96% of the unsecured creditors, will provide an estimated 7.5%-8.5% recovery to unsecured creditors.
The Plan confirmation is a great outcome especially when considering the fact that the Debtor filed for chapter 11 after it failed to sell its assets out of court and to secure a stalking horse bidder or debtor-in-possession financing.
To see the confirmation order for the case, please click here.
The Plan confirmation follows a deal based on a plan support agreement (the “PSA”) that was approved by the Court on February 8, 2017. Pursuant to the PSA, the Debtor was sold for $23 million to VM Bidco LLC, an affiliate of Quantum Partners LP (“QP”). The sale price consists of (i) an $8 million debtor-in-possession financing which will convert into an exit facility, and (ii) $15 million in cash for recoveries under the Plan in which QP will receive all equity interests in the reorganized Debtor. The Plan, which was accepted by more than 96% of the unsecured creditors, will provide an estimated 7.5%-8.5% recovery to unsecured creditors.
The Plan confirmation is a great outcome especially when considering the fact that the Debtor filed for chapter 11 after it failed to sell its assets out of court and to secure a stalking horse bidder or debtor-in-possession financing.
To see the confirmation order for the case, please click here.