Arecont Vision said on May 18 that it has executed an asset purchase agreement with an affiliate of Turnspire Capital Partners, LLC under which Turnspire will acquire substantially all of the company’s assets.
This announcement follows Arecont Vision’s previous statement that the company has initiated proceedings under chapter 11 of the United States Bankruptcy Code in the District of Delaware to facilitate the purchase agreement and substantially reduce its debt.
The purchase agreement’s key elements include:
• Employees will be retained.
• Customer programs and services will continue.
• Vendors and Suppliers with valid, prepetition trade claims will be paid in full.
• Arecont Vision will be debt-free.
• Investments will be made into the development of new, industry-leading products.
• Company will have new owners and a new Board of Directors.
“Through this partnership, Arecont Vision is poised for growth. Reducing our debt and putting resources back into the business will ensure greater innovation, larger strategic partnerships, and a stronger company for all of our constituents,” said Raul Calderon, Chief Operating Officer and General Manager, Arecont Vision, in a statement. “Since we began the chapter 11, operations have been running very smoothly. We are appreciative of the support of our employees, customers and vendors, and look forward to closing the sale and emerging in July a stronger, more competitive company.”
As previously stated by Arecont Vision, the Turnspire bid will be subject to an auction at which it will be subject to higher and better offers. It also requires Court approval.
Arecont has requested a bid deadline of June 29, 4:00 pm EST, and auction date of July 5 and a sale hearing on or about July 6.
More information about the restructuring is available at www.omnimgt.com/arecont.