CalAmp reports Chapter 11 bankruptcy filing, restructuring support agreement

On May 31, CalAmp Corp. and its wholly-owned subsidiaries, CalAmp Wireless Networks Corporation, LoJack Global LLC and Synovia Solutions LLC, entered into a Restructuring Support Agreement with Lynrock Lake Master Fund LP, as lender under the Secured Term Loan Facility, and the holder of Secured Notes Claims. The RSA contemplates a financial restructuring of the company’s debts by, among other things, (i) amending and restating the Secured Term Loan Facility with a lower interest rate and longer maturity date, (ii) converting the approximately $229M of Convertible Senior Secured Notes held by Lynrock to equity, and (iii) paying allowed unsecured claims in full in cash or such other treatment so as to render such claims unimpaired. The company will seek to effectuate the RSA through a joint prepackaged chapter 11 plan of reorganization, pursuant to which, among other things, the company will become a private company. The Plan further contemplates that existing equity interests of CalAmp, including warrants, options, restricted stock units and preferred stock units, will be cancelled. On June 3, CalAmp and its wholly-owned subsidiaries, CalAmp Wireless Networks Corporation, LoJack Global LLC and Synovia Solutions LLC, filed voluntary petitions for relief under chapter 11 of title 11 of the United States Code in the United States Bankruptcy Court for the District of Delaware. “The Debtors continue to operate their businesses as ‘debtors in possession’ under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code and orders of the Bankruptcy Court. The Debtors sought approval of a variety of “first day” motions containing customary relief intended to assure the Company’s ability to continue its ordinary course operations and make a smooth transition into Chapter 11. The Company will seek an order regarding the Company’s common stock, par value $0.01 per share. The NOL Order, if approved by the Bankruptcy Court, will be designed to assist the Debtors in preserving certain of their tax attributes by establishing, among other things, procedures that certain stockholders and potential stockholders must comply with regarding transfers of the Common Stock, as well as certain obligations with respect to notifying the Debtors of current stock ownership. The Debtors will seek prompt confirmation of the Plan and to emerge from the Chapter 11 proceeding a significantly de-levered company,” a regulatory filing stated.