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December 10, 2018 – The Debtors filed a Modified Equity Commitment letter, dated December 10, 2018 from ACON Equity Partners III, L.P. (the “Equity Sponsor”) detailing the terms of the financing to be provided by the Equity Sponsor in exchange for 100% of the Company’s new common stock [Docket No. 881].
The letter, filed as Exhibit A to the Debtors’ First Amended Joint Chapter 11 Plan, states “This Equity Commitment Letter confirms the commitment of Equity Sponsor to directly or indirectly provide to the Debtors, subject to the limitations set forth in this Equity Commitment Letter, $26,952,768 of cash or letters of credit equity financing on the effective date of the Restructuring Plan and an additional $4,935,000 of cash or letters of credit equity financing, as needed, for the purpose of funding the Debtors’ obligations under the Restructuring Plan (the ‘Equity Financing’); provided that Equity Sponsor shall not, under any circumstances, be obligated to contribute to, purchase equity or debt of, or otherwise provide funds to the Debtors in any amount in excess of the Equity Financing….The Equity Financing shall be in exchange for the issuance of 100% of the new common stock of the Debtors.”
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