Big Village files Chapter 11 bankruptcy with plans to sell assets

By Sarah Lizee

Olympia, Wash., Feb. 8 – Big Village Holding LLC filed Chapter 11 bankruptcy Wednesday in the U.S. Bankruptcy Court for the District of Delaware.

The advertising, technology and data company said in court documents that its business is continuing to face a number of significant challenges following the Covid-19 pandemic.

Despite prolonged efforts, the company was unable to successfully restructure out of court.

Big Village has executed asset purchase agreements to sell its Agency, Insights and Balihoo business lines to Refuel Agency (NMMB, Inc.) for $12 million in cash plus assumed liabilities, and a second agreement to sell the managed services business of EMX Digital to ZStream Acquisition, LLC for $2.1 million in cash, assumed liabilities and other amounts.

The agreements are subject to higher and better offers. The company is seeking court approval of bid procedures that include a March 27 bid deadline, a March 30 auction, an April 6 sale hearing, and an April 20 closing date.

The agreement with Refuel includes bid protections consisting of a $350,000 breakup fee and a $250,000 expense reimbursement. The agreement with ZStream includes a 3% breakup fee and a $150,000 expense reimbursement.

The company engaged in negotiations with agent BNP Paribas and its prepetition secured lenders regarding the consensual use of cash collateral to fund the case. Big Village has filed a motion seeking court approval to use the cash collateral.

The company said it believes the cash collateral will be enough to fund operations and the costs of Chapter 11 without the need for debtor-in-possession financing.

There is currently about $49.29 million of principal outstanding on the company’s credit facilities.

In its petition, the company listed 5,001 to 10,000 creditors, $10 million to $50 million in assets and $50 million to $100 million in liabilities.

Its largest unsecured creditors are CPX Interactive, LLC, based in New York, with a $6.6 million litigation claim, Pluto Inc., based in Hollywood, Calif., with a $4.48 million trade claim, Columbia REIT, based in New York. With a $2.81 million lease/rent claim, Yahoo Ad Tech LLC, based in Los Angeles, with a $2.78 million trade claim, Google Inc.-Adwords, based in San Francisco, with a $1.68 million trade claim, Proper Media, LLC, based in San Diego, Calif., with a $1.18 million trade claim, and Samsung Electronics America, based in Chicago, with a $1.15 million trade claim.

Big Village is advised by Young Conaway as its legal advisers, Stephens, Inc. as its investment banker and Portage Point Partners as restructuring advisers.

The Chicago-based advertising, technology and data company filed Chapter 11 bankruptcy under case number 23-10174

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