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Crossroads Systems Bankruptcy Plan Summarized

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BankruptcyData’s detailed analysis and summary of Crossroads Systems’ the Prepackaged Plan of Reorganization with Technical Modifications, dated September 11, 2017, is now available. The U.S. Bankruptcy Court confirmed the Plan on September 18, 2017; however, an effective date has not yet been issued.

BankruptcyData notes, “The Prepackaged Plan effectuates the terms of an agreement with 210/CRDS Investment LLC (‘210′), that will provide the Debtor with an equity investment of $4 million in exchange for shares of the Reorganized Company’s common stock representing approximately 49.49% of the common stock and additional financing of $10 million which will allow the Debtor to monetize its patents, make profitable acquisitions, run the Debtor’s business and fund necessary capital expenditures all to maximize shareholder return.”

BankruptcyData’s Plan Summary continues, “Common Interests will for all purposes be cancelled, and the Holders of Common Interests will be issued an equal number of shares of New Common Stock.” BankruptcyData premium-level subscribers receive access to the full summary, which provides further details on corporate background, events leading to Crossroads Systems’ August 13, 2017 Chapter 11 filing, recovery specifications and a comprehensive break-down of all claimant classes.

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