Arecont Vision files for Chapter 11

LOS ANGELES—Arecont Vision announced this week that it has filed for Chapter 11 bankruptcy in the District of Delaware, and agreed to have substantially all of the company's assets acquired by an affiliate of Turnspire Capital Partners, LLC, an equity firm that is known as a turnaround specialist. In the Arecont press release, the company stated that the proposed transaction will enable Arecont “to pursue accelerated development of new, industry-leading video surveillance products and better meet the needs of its customers today and beyond.”

Raul Calderon, Arecont Vision's chief operating officer and general manager, said in the announcement, “Through this transaction, Arecont Vision will shed its debt and make bolder decisions to invest in our future versus maintain the status quo. We are excited to have found a partner in Turnspire who shares our vision and will ensure an exciting future for the Company to the benefit our customers, employees, and partners,”

He continued, “Manufacturing, customer service, and sales activities will continue uninterrupted. Our employees will receive their wages and benefits as before, and our own vendors and suppliers will be paid in the ordinary course of business going forward.”

Arecont said that current management will continue to lead the company, and business “will continue uninterrupted, and operations will be supported by debtor-in-possession (DIP) financing provided by Arecont Vision's current secured lenders.”

The Turnspire bid will be subject to an auction at which it will be subject to higher and better offers, and require Court approval. The Company anticipates the transaction will move swiftly and close within 60-75 days.

“Arecont Vision implemented key strategic initiatives beginning in mid-2017 that continue in the current year, all aimed at enhancing customer engagement, increasing revenue, and optimizing business processes. The goal is to better address the needs of the market and maintain and expand our industry technology leadership,” said Calderon. “While these efforts bore fruit immediately, we can now accelerate that progress unburdened by excess debt. Ultimately it was determined that using the chapter 11 process to facilitate a reorganization and sale was the swiftest and most efficient way to reduce debt while accelerating sales growth and product development.”

The Company is advised by the law firm of Pachulski, Stang, Ziehl & Jones LLP, Armory Strategic Partners as the Company's chief restructuring officer and financial advisor, and Imperial Capital as the Company's investment banker.

Court filings as well as other information related to the restructuring are available here.