Near Intelligence (NASDAQ:NIR) stock is taking a beating on Monday after the data intelligence company filed for Chapter 11 bankruptcy protection.
Near Intelligence is planning to sell all of its assets through the bankruptcy filing. It’s already secured a stalking horse bid from affiliates of Blue Torch Finance LLC to achieve this goal.
On that same note, these Blue Torch Finance LLC affiliates are also providing it with debtor-in-possession (DIP) financing throughout the bankruptcy. This has them giving it $16 million in operating capital. This has Near Intelligence intending to continue normal operations throughout the bankruptcy.
Investors will note that the Blue Torch Finance LLC affiliates intend to acquire Near Intelligence for a credit offering of no less than $50 million. This takes into account the $16 million in DIP and $34 million the company owes to its lenders through a senior secured credit facility.
How This Affects NIR Stock
With this news, the future of Near Intelligence stock is uncertain. It seems likely that the shares will no longer be traded publicly once the stalking horse bid is complete.
NIR stock is down 33.6% as of Monday morning alongside the bankruptcy news.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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