CalAmp Files Bankruptcy to Complete Lender-Backed Restructuring

Bloomberg) -- CalAmp Corp., which develops software designed to track vehicles and improve company logistics, has filed bankruptcy to complete a debt-cutting deal that hands control of the business to lender Lynrock Lake Master Fund LP.  

Publicly traded CalAmp filed Chapter 11 on Monday in Delaware to execute a restructuring deal where Lynrock has agreed to swap $229 million in secured notes for 100% of the equity in the reorganized business. Other CalAmp creditors would be fully repaid in cash, the company said in court papers.

CalAmp estimated its assets are worth about $281.2 million and that its liabilities are worth about $355.4 million. Shares of the company dropped as much as 61% on Monday and declined 81% so far this year. 

Before filing bankruptcy, CalAmp said its financial performance had been deteriorating and that it faced “imminent defaults” under its lending documents. The Irvine, California-based company said it also worried about its stock potentially being delisted from Nasdaq, which would have likely triggered a default, according to court documents.

In response, the company retained Oppenheimer & Co. as a financial adviser and investment banker to negotiate with lenders. CalAmp has already started soliciting creditor votes on its debt-cutting plan and will seek bankruptcy court approval of the restructuring on July 11, according to court documents.

If the restructuring is completed, CalAmp will become a private company, according to a press release. 

The case is CalAmp Corp., number 24-11136, in the US Bankruptcy Court in Delaware (Wilmington).

--With assistance from Claire Boston.

(Updates to include information about Lynrock in the first and second paragraphs, latest shares in the third paragraph, and the take-private deal in the sixth paragraph.)