Vewd Software USA’s Chapter 11 plan effective as of Feb. 16

By Sarah Lizee

Olympia, Wash., Feb. 18 – Vewd Software USA, LLC’s second amended pre-packaged Chapter 11 plan went into effect on Wednesday, according to a notice filed Friday with the U.S. Bankruptcy Court for the Southern District of New York.

The plan, which was confirmed on Feb. 1, contemplates a comprehensive reorganization that will result in a substantial deleveraging of the debtors’ balance sheets.

The reorganization will be funded by a $20 million debtor-in-possession facility, including $10 million of new money, provided by the DIP lenders that will be used to pay working capital and other general corporate needs of the debtors in the ordinary course of business and the administration of the Chapter 11 cases.

When the debtors emerge, the DIP facility will convert into an exit facility of at least $25 million plus up to $20 million of new money, whether as delayed-draw term loans or through the issuance of preferred stock by the reorganized debtors.

The plan contemplates a conversion of the prepetition lenders’ outstanding prepetition debt arising under the prepetition credit agreement into the equity of the reorganized company that will own 100% of the equity of Vewd AS.

Under the plan, holders of DIP facility claims will receive their pro rata share of exit term loans in the total principal amount equal to the amount of allowed DIP claims.

Holders of pre-petition credit agreement claims will receive their pro rata share of 100% of the reorganized common stock, subject to dilution, if any, by the management incentive plan.

Holders of other secured claims will receive payment in full in cash, the collateral securing their claims, reinstatement, or other treatment that leaves the claims unimpaired.

Holders of other priority claims will receive payment in full in cash.

Holders of general unsecured claims will continue to be paid by the debtors in the ordinary course of business or receive distributions acceptable to the required consenting lenders as necessary to render the claims unimpaired.

Intercompany claims and Vewd USA interests will be reinstated or canceled with no distribution.

Vewd AS and LLH AS interests will be canceled with no distribution.

Subordinated claims will be released with no distribution.

The New York-based company provides over-the-top (OTT) video streaming services. The company filed bankruptcy on Dec. 15 under Chapter 11 case number 21-12065.

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