BroadVision, Inc. Emerges from Chapter 11 with Confirmation of its Chapter 11 Plan of Reorganization
May 15 2020 - 5:36PM
BroadVision, Inc. (the “Company”) announced that the Company has
emerged from Chapter 11 bankruptcy protection, successfully
completing its financial restructuring process and implementing its
plan of reorganization (the “Plan”), which was confirmed today, May
15, 2020, by order of the U.S. Bankruptcy Court District of
Delaware today (the “Confirmation Order”). Certain capitalized
terms in this release that are not otherwise defined herein will
have the meanings assigned to them in the Plan.
Pursuant to the Confirmation Order, holders of
Allowed Claims against the Debtor will receive full payment of
their Claims. Additionally, holders of record of the
Company’s common stock (“Debtor Common Stock”) traded on the Nasdaq
Stock Market through the close of business on Monday, May 18, 2020
are entitled to receive a cash distribution in the amount of $4.375
per share (assuming no more than 5,142,333 shares are outstanding)
(the “Equity Interest Recovery”), plus each holder’s pro rata share
of the Company’s cash on hand (including proceeds from the sale of
a block of IP addressed owned by the Company) as of the effective
date of the Plan. Cash payments may be issued in one or more
distributions and will be issued by the Company’s Distribution
Trust and in accordance with the Plan. The Equity
Interest Recovery may be less than $4.375 per share of Debtor
Common Stock in the event that (A) the Debtor has more than
5,142,333 shares of Debtor Common Stock outstanding (including all
Outstanding Shares, Restricted Stock Awards, Restricted Stock Units
and Permitted Stock Options, whether or not vested) or (B) the
Debtor lacks sufficient Cash (including Cash-on-Hand and proceeds
from the liquidation of the IP Addresses) to pay all Case-Related
Claims and Expenses and repayment of amounts, if any, incurred by
ESW Capital, LLC (“ESW”) in connection with funding such
Case-Related Claims and Expenses.
Nasdaq has indicated to the Company that it will
suspend trading of the Debtor Common Stock effective as of the
close of business on Monday, May 18, 2020. Nasdaq will file
with the Securities and Exchange Commission (the “SEC”) a Form 25
notifying the SEC of Nasdaq’s withdrawal of the Debtor Common Stock
from listing on the Nasdaq Stock Market and the intention to
withdraw the Debtor Common Stock from registration under the
Securities Exchange Act of 1934.
In lieu of receiving the cash distributions
described immediately above, ESW has acquired 100% of
the equity interests of the reorganized Company in exchange for
ESW’s holdings of the Company’s common stock, free and clear of any
options, liens, or other claims.
A copy of the Confirmation Order and associated
Plan can be found in the Current Report on Form 8-K filed with the
Securities and Exchange Commission on or about May 15, 2020 or free
of charge by visiting https://dm.epiq11.com/BroadVision.
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 BroadVision’s consolidated 19.9%-owned
subsidiary, Vmoso, Inc. (“VMSO”)—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
This announcement contains or may contain
forward-looking statements that are based on management's beliefs,
assumptions, and expectations and on information currently
available to management. All statements that are not statements of
historical fact, including those statements that address future
operating plans or performance and events or developments that may
occur in the future, are forward-looking statements, such as those
statements regarding the projections and timing surrounding
commercial operations and sales, clinical trials, pipeline product
development, and future financings. No undue reliance should be
placed on forward-looking statements. Although management believes
forward-looking statements are reasonable as and when made,
forward-looking statements are subject to a number of risks and
uncertainties that may cause actual results to vary materially from
those expressed in forward-looking statements, including the risks
and uncertainties that are described in the “Risk Factors” and
“Management’s Discussion and Analysis of Financial Condition and
Results of Operations” in the Company’s Forms 10-Q filed with the
Securities and Exchange Commission (“SEC”) on September 23, 2019
and similar disclosures in subsequent reports filed with the SEC.
Any forward-looking statements in this announcement speak only as
of the date when made. BroadVision, Inc. does not assume any
obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events,
or otherwise.
Contact:
Pehong Chen, CEO
650 331 1000
BroadVision (NASDAQ:BVSN)
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