CalAmp Corp. Enters Restructuring Support Agreement and Files for Chapter 11 Bankruptcy

CalAmp Corp. and its subsidiaries have entered into a Restructuring Support Agreement in an effort to restructure the company’s debts. The agreement includes amending and restating the Secured Term Loan Facility, converting Convertible Senior Secured Notes to equity, and paying unsecured claims in full. The company will seek to implement the agreement through a joint prepackaged chapter 11 plan of reorganization, with the goal of becoming a private company.

On June 3, CalAmp and its subsidiaries filed for chapter 11 bankruptcy in the United States Bankruptcy Court for the District of Delaware. The company will continue to operate as ‘debtors in possession’ under the jurisdiction of the Bankruptcy Court. The filing included various “first day” motions to ensure the company can continue its operations smoothly during the bankruptcy process.

The company will seek approval for an order regarding its common stock, with the goal of preserving certain tax attributes. The plan is to emerge from the Chapter 11 proceeding as a significantly de-levered company. This move is seen as a strategic step to address the company’s financial challenges and position it for future growth and success. Stay tuned for updates on CalAmp’s restructuring journey.