A bankruptcy judge cleared the way for Seegrid to exit from Chapter 11 by okaying the reorganization plan and rejecting challenges lodged by the ex-CEO.
The reorganization plan includes a debt-for-equity swap with Giant Eagle, Seegrid’s largest lender, share and stakeholder who agreed to a delayed maturation date for tens of millions of dollars in unsecured notes. Giant Eagle will now have a 40% state in Seegrid. Thus Seegrid can remain open as a viable business albeit one with a lot of debt.
“I believe the debtor has demonstrated that the plan itself is feasible,” said Judge Shannon adding that the feasibility standard does not require a guarantee of future success. “One of the best ways to assess feasibility is stakeholder support, and Giant Eagle and virtually all other creditors except the [group headed by the ex-CEO] voted in favor of the plan.”
Seegrid filed for bankruptcy protection October 21, 2014. The judgement approving the reorganization plan was on January 20, 2015.
Seegrid’s new website clearly shows the refocusing of effort to vision systems and by selling partner-produced pallet trucks and tow tractors – VGVs (vision-guided vehicles) – integrated with Seegrid’s vision systems and fleet management software. Seegrid’s VGVs navigate without wires, lasers, magnets or tape and their business focuses on partnering with tug, tow and lift manufacturers thereby enabling Seegrid to daisy-chain their vision systems onto their partner’s manufacturing and marketing efforts to sell their lifts and tugs.
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