Television software company Vewd has come to an agreement with lenders to swap debt for equity under a Chapter 11 restructuring plan. The financial restructuring process is expected to have no impact on the day-to-day operations of the company, which plans to carry on business as usual. Vewd provides software to companies including Sony, Hisense and TPV.
The Oslo-based Vewd company, together with its American arm, filed voluntary Chapter 11 petitions with the United States Bankruptcy Court for the Southern District of New York to swap $118 million in debt for equity.
“As we embark on our next phase of growth in a highly dynamic, fast-paced industry, it has become imperative that we boost our ability to invest into the accelerated roll-out of our new products and solutions,” said Vewd chief executive Aneesh Rajaram.
“We look forward to emerging from this process with a healthy balance sheet, empowering Vewd to continue its growth trajectory within the evolving OTT industry,” he wrote. “Our future owners have demonstrated a clear commitment to our company’s long-term success and our mission to enable entertainment everywhere.”
Vewd reported that lenders have agreed to provide $10 million of new financing through a debtor in possession facility, subject to court approval. Combined with the operating cash flows, the new financing will provide sufficient liquidity for the company to operate throughout the financial restructuring process, which is anticipated to last less than 45 days.
Vewd was spun out of the Opera Software company. In late 2016, investment company Moore Frères & Company acquired a majority stake in the Opera TV business for $80 million, with Opera Software retaining around a 30% minority holding. Opera TV was renamed Vewd September 2017. Opera changed its name to Otello after selling its remaining browser and consumer business, together with the Opera brand, to a Chinese consortium of investors. The restructuring plan is understood to be related to a three-year dispute over the sale of the remaining stake in Vewd owned by Otello.