© alexander podshivalov Components | March 07, 2013

Conexant Systems files for Chapter 11

Conexant announces that it has filed a chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware.
The company reached an agreement to facilitate an expedited restructuring of the Company’s balance sheet with the company’s equity sponsors and its sole secured lender, QP SFM Capital Holdings Limited (the “Secured Lender”), an entity managed by Soros Fund Management LLC.

As a part of the restructuring, the secured lender will exchange approximately USD 195 million of secured debt into equity in the company. In addition, the secured lender will receive USD 76 million of unsecured notes issued by a holding company, which can elect to either pay interest in cash or accrue interest in kind. This restructuring will eliminate debt at the operating company

To implement the restructuring agreement, Conexant voluntarily commenced cases under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware. Conexant expects to receive Court approval for its “Pre-Arranged” plan of reorganization in less than 85 days. The Company expects that operations will continue in the ordinary course throughout the financial restructuring process, and none of Conexant’s foreign operating subsidiaries are expected to be directly impacted by the filing.

“Following a comprehensive strategic and financial review of the business, we are pleased to have reached an agreement that will allow Conexant to expeditiously complete our financial restructuring initiatives and ensure that we are able to continue serving our customers for many years to come,” said Sailesh Chittipeddi, President and Chief Executive Officer of Conexant.

In conjunction with today’s filing, the Company filed a number of customary motions and expects to receive immediate authority to continue to support its employees, customers and suppliers during the financial restructuring process. As part of these motions, the Company has asked the Court for permission to continue paying employee wages and salaries and to provide employee benefits without interruption.
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December 13 2018 1:08 pm V11.10.14-1