Telematics provider CalAmp said it’s business as usual after filing for Chapter 11 bankruptcy. It is now owned by Lynrock Lake Master Fund LP, the company’s largest creditor.
The Restructuring Support Agreement was reached Monday with the filing in Delaware Bankruptcy Court. CalAmp said it intends to exchange approximately $229 million in convertible senior notes held by Lynrock into equity interests, which could enable the reorganized company to better serve its customers.
“Given that CalAmp is a public company, we determined that the most efficient and practical way to execute this transaction is through a Chapter 11 restructuring process,” the company said in an email to customers. “… Importantly, by eliminating the interest on the debt and the overhead of a public company, we will free up additional capital that will allow us to invest more significantly in the numerous opportunities we see to best support your evolving needs.”
CalAmp added that all its employees will remain with the company and supply, support and operations will continue “as usual.”
“We intend to emerge promptly from this process with a healthy balance sheet and strong cash flow generation that will enable CalAmp to be a stronger business partner,” the statement added. “CalAmp is here to stay, and we are here to serve you.”
The company’s NASDAQ stock price reached a high of $987.56 per share on July 14, 2000. It was trading at about $1 per share as of this report. There was no information available as to when it will be delisted.
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