Wave Computing, Inc.announced that it has filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the Northern District of California, San Jose Division.
The bankruptcy process will allow the Company to restructure its liabilities and position the business for long-term growth.
Wave has arranged for Debtor-in-Possession ("DIP") financing from an affiliate of Tallwood Venture Capital totaling approximately $27.9 million, which provides the business sufficient liquidity to continue regular business operations through the bankruptcy process.
Wave expects no disruption to existing customers and will continue to offer the same level of service and maintenance and continue to protect its IP during the Chapter 11 process. All existing management remains in place.
Wave also announced it has appointed Lawrence Perkins of SierraConstellation Partners as Chief Restructuring Officer and Thomas FitzGerald as an independent board director.
Mr. Perkins will lead, manage and oversee the Company's restructuring process with the assistance of Wave's management team, all of whom remain in their current roles. Mr. FitzGerald is an experienced board director who has spent over three decades in corporate leadership roles, including guiding companies through restructurings.
"After extensive consultations and discussions with the board, creditors and advisers, we determined that restructuring Wave Computing through the Chapter 11 process was the best and most efficient way to ensure the business has the financial flexibility to pursue further commercialization of our technology and grow over the long term," said Mr. Perkins.
"Today's actions combined with recent efforts to focus Wave's strategy will yield a fundamentally stronger business upon emergence from Chapter 11 with a promising strategy for our unique dataflow technology and intellectual property assets. I am deeply grateful for the Wave team, who are continuing to deliver for our customers."
Wave has filed a series of customary "first day" motions with the Bankruptcy Court. When granted, these motions will enable day-to-day operations, regular payment of employee wages and benefits, and payment to key vendors for goods and services provided on or after the filing date to continue as usual. ■