Item 1.03. Bankruptcy or Receivership.
Confirmation of Amended Plan of Liquidation
As previously disclosed, on August 2, 2017 (the Petition Date), TerraVia Holdings, Inc. (TerraVia or the
Company) and certain of its subsidiaries (collectively with TerraVia, the Debtors) filed voluntary petitions (the Bankruptcy Petitions, and the cases commenced thereby, the Chapter 11 Cases) under
chapter 11 of title 11 of the United States Code (the Bankruptcy Code) in the United States Bankruptcy Court for the District of Delaware (the Court). On October 31, 2017, the Company filed its proposed combined
disclosure statement and plan of liquidation (the Plan) and a motion seeking an order confirming the Plan with the Bankruptcy Court. On November 16, 2017, the Company filed an amended proposed combined disclosure statement and plan
of liquidation with the Bankruptcy Court and on and January 4, 2018, the Company filed a further amended proposed combined disclosure statement and plan of liquidation with the Bankruptcy Court (the Plan, as amended, the Amended
Plan).
On January 8, 2018, following a confirmation hearing held on January 8, 2018, the Bankruptcy Court entered an
order confirming the Amended Plan (the Confirmation Order).
The Amended Plan generally provides for the payment in full of
timely filed and undisputed Other Secured Claims, Other Priority Claims, and SVB Facility Claims (each, as defined in the Amended Plan) (collectively, Unimpaired Claims), up to payment in full of Convenience Claims (as defined in the
Amended Plan) of not more than $20,000, with General Unsecured Claims (as defined in the Amended Plan) to be paid their pro rata share of the assets remaining after payment of the Unimpaired Claims, the Convenience Claims and certain other amounts.
Claims under Section 510(b) of the Bankruptcy Code will be cancelled on the effective date of the Amended Plan and Interests in the Subsidiary Debtors (as defined in the Amended Plan), at the option of the Debtors, shall be Reinstated (as
defined in the Amended Plan) or cancelled.
In addition, upon the effective date of the Amended Plan, all Existing Equity Interests (as
defined in the Amended Plan) shall be cancelled and released without any distribution or retention of any property on account of such Interests.
The Amended Plan is not yet effective. In accordance with the Amended Plan, the Amended Plan will become effective upon the satisfaction or
waiver of certain conditions precedent. The Company currently anticipates that the effective date of the Amended Plan will occur in the first quarter of 2018. On the effective date of the Amended Plan, all assets of the Company will be administered
by Emerald Capital Advisors Corp, who will become the post-confirmation plan administrator, as further described in the Amended Plan.
The
foregoing description of the Amended Plan does not purport to be complete and is qualified in its entirety by reference to the full text of the Amended Plan, which is filed as Exhibit 2.1 hereto and incorporated herein by reference. The full text of
the Amended Plan is also available on the website of Kurtzman Carson Consultants LLC, the Companys claims agent, at
www.kccllc.net/TerraVia
. Additionally, a copy of the Confirmation Order is filed as Exhibit 99.1 hereto.
Share Information
As of
October 31, 2017, the Company had 108,510,762 shares of common stock outstanding, 1,753,656 restricted stock awards issued and outstanding, and 11,885,800 shares underlying stock options that are issued and outstanding. No shares of common
stock are reserved for future issuance in respect of claims and interests filed and allowed under the Amended Plan. In its most recent monthly operating report filed with the Bankruptcy Court on December 28, 2017, the Company reported total
assets of $50,505,208 and total liabilities of $184,960,540 as of November 30, 2017.