BROADVISION, INC. REACHES AGREEMENT WITH SHAREHOLDERS ON PREPACKAGED PLAN TO RESTRUCTURE AND SELL BUSINESS
March 27 2020 - 4:54PM
BroadVision, Inc. (“the Company”) today announced that it has
entered into a Restructuring Support Agreement (the “RSA”) with ESW
Capital, LLC, a major shareholder of the Company (“ESW” or the
“Plan Sponsor”), and other major shareholders of the Company,
including Dr. Pehong Chen and Honu Holdings, LLC
(collectively, the “Consenting Shareholders”) to restructure the
Company. To implement the terms of the RSA, the Company will file,
and the Plan Sponsor and the Consenting Shareholders will support,
the Company’s Prepackaged Plan of Reorganization Under Chapter 11
of the Bankruptcy Code for BroadVision, Inc. (the “Plan”).
Upon its effective date, the Plan will provide for the full
payment of all allowed administrative and legal costs, and secured
(if any) and unsecured liabilities (including those of employees
and vendors). Additionally, holders of the Company’s common stock
(other than ESW) are expected to receive $4.375 per common share
(assuming no more than 5,142,333 shares are outstanding), plus
their pro rata share of the Company’s cash on hand as of the
effective date of the Plan (including proceeds from the sale of a
block of IP addressed owned by the Company) after payment of
certain case-related claims and expenses. ESW will
acquire 100% of the equity interests of the reorganized
Company, free and clear of any options, liens, or other claims.
To implement the RSA and the Plan, the Company anticipates
filing a voluntary petition for reorganization under Chapter 11 of
the United States Bankruptcy Code in the United States Bankruptcy
Court for the District of Delaware in the coming days.
The Company expects its operations to continue as normal
throughout the contemplated Court-supervised process. Upon
emergence, the Company will continue to provide customers with
exceptional service and product offerings.
Dr. Pehong Chen, the President, Chief Executive Officer, Interim
Chief Financial Officer, and Chairman of the Board of Directors of
the Company said, “I’ve watched this market change – and the needs
of our customers along with it. I’m energized by the benefits ESW
will bring to our customers.”
ABOUT BROADVISION, INC.
Driving innovation since 1993, BroadVision (Nasdaq: BVSN)
provides e-business solutions that enable the enterprise and its
employees, partners, and customers to stay actively engaged,
socially connected, and universally organized to achieve greater
business results. BroadVision® solutions—including Vmoso for
virtual, mobile, and social business collaboration, and Clearvale
for enterprise social networking, both of which are now owned and
being developed by Vmoso, Inc. (“VMSO”), a company in which
BroadVision owns a 19.9% interest —are available globally in the
cloud via the Web and mobile applications. Visit
www.BroadVision.com for more details.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING
STATEMENTS
Information in this release that involves expectations or plans
regarding the future, including statements regarding the RSA and
the Plan, are forward-looking statements within the meaning of
Section 21E of the Securities Exchange Act of 1934. Such
forward-looking statements involve risks and uncertainties,
including actions taken and decisions made by the Company’s
creditors and other third parties with interests in the Plan, the
Company’s ability to obtain Bankruptcy Court approval of the Plan,
the Company’s and ESW’s ability to consummate the transactions
contemplated by the Plan, and the amount of time required to
consummate such transactions.
Contact:
Bill Porter
+44 7782 167831
bill.porter@broadvision.com
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