Kit Digital Files for Bankruptcy After Shareholder Accord
Kit Digital Inc. (KITD), a developer of software for managing digital video, filed for bankruptcy after reaching an agreement with some shareholders on a prepackaged restructuring plan.
The company, based in New York, listed assets and debt of more than $10 million each in Chapter 11 documents filed today in U.S. Bankruptcy Court in Manhattan.
Kit said April 16 that it would file for bankruptcy on April 24 with a debt plan supported by three of the largest shareholders. Kit indicated in the petition that a plan will be filed, though it hasn’t yet been posted on the docket.
The company’s last financial statements show revenue of $107.3 million for the six months ended June 30, resulting in a $110.8 million loss from operations, including a $55 million goodwill-impairment charge.
Jones Day, with a claim of $1.6 million for legal services, is listed as the largest unsecured creditor.
The case is In re KIT Digital Inc., 13-11298, U.S. Bankruptcy Court, Southern District of New York (Manhattan).
To contact the reporter on this story: Dawn McCarty in Wilmington at firstname.lastname@example.org