CalAmp Files Bankruptcy to Complete Restructuring
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CalAmp Corp., which develops business software designed to track vehicles and improve company logistics, has filed bankruptcy to complete a lender-backed plan to cut debt.
Publicly traded CalAmp filed Chapter 11 on June 3 in Delaware to execute a restructuring deal where certain owners of its secured notes will swap out debt for 100% of the equity in the reorganized business. Other CalAmp creditors would be fully repaid in cash, the company said in court papers.
CalAmp estimated its assets are worth about $281.2 million and that its liabilities are worth about $355.4 million. Shares of the company dropped 54% this year as of the May 31 close.
Before filing bankruptcy, CalAmp said its financial performance had been deteriorating and that it faced “imminent defaults” under its lending documents. The Irvine, Calif.-based company said it also worried about its stock potentially being delisted from Nasdaq, which would have likely triggered a default, according to court documents.
In response, the company retained Oppenheimer & Co. as a financial adviser and investment banker to negotiate with lenders. CalAmp has already started soliciting creditor votes on its debt-cutting plan and will seek bankruptcy court approval of the restructuring on July 11, according to court documents.
The case is CalAmp Corp., number 24-11136, in the US Bankruptcy Court in Delaware (Wilmington).
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