Arecont Vision said this week it has initiated proceedings for Chapter 11 restructuring and is negotiating a purchase agreement with New York private equity firm Turnspire Capital Partners under which Turnspire will acquire substantially all of the company's assets.
By SP&T Staff
Arecont Vision stressed that it will continue operations — the move is designed to relieve the company of its debt burden.
“Through this transaction, Arecont Vision will shed its debt and make bolder decisions to invest in our future versus maintain the status quo. We are excited to have found a partner in Turnspire who shares our vision and will ensure an exciting future for the company to the benefit our customers, employees, and partners,” said Raul Calderon, Chief Operating Officer and General Manager, Arecont Vision, in a statement. “Manufacturing, customer service, and sales activities will continue uninterrupted. Our employees will receive their wages and benefits as before, and our own vendors and suppliers will be paid in the ordinary course of business going forward.”
The current management structure will continue through the transition, according to Arecont Vision. The Turnspire bid is subject to an auction, potential competing better offers, and will require court approval. The company expects the transaction will be completed within 75 days.
The company is advised by the law firm of Pachulski, Stang, Ziehl & Jones LLP, Armory Strategic Partners as the company’s chief restructuring officer and financial advisor, and Imperial Capital as the company’s investment banker.
More information about the court filing and restructuring is available here.