February 27, 2017 3:52 PM ET

Technology Hardware, Storage and Peripherals

Company Overview of Violin Memory, Inc.

Company Overview

Violin Memory, Inc. develops and supplies memory-based storage systems to bring storage performance in line with high-speed applications, servers, and networks worldwide. The company provides flash storage platforms and all flash arrays that integrate enterprise-class hardware and software technologies to address the shortcomings of hard disk drive-based and solid state drive-based storage solutions that use off-the-shelf components. Its products include 7300 Flash Storage Platform, which combines data protection and reduction services; 7300E Flash Storage Platform; 7600 Flash Storage Platform that addresses the needs of primary and high performance storage; 7700 Flash Storage Platform for l...

4555 Great America Parkway

Santa Clara, CA 95054

United States

Founded in 2005

318 Employees

Phone:

650-396-1500

Fax:

650-396-1543

Key Executives for Violin Memory, Inc.

Chief Executive Officer, President, Director and Member of Strategic Alternatives Committee
Age: 57
Total Annual Compensation: $750.0K
Chief Financial Officer and Principal Accounting Officer
Age: 47
Total Annual Compensation: $300.0K
Compensation as of Fiscal Year 2016.

Violin Memory, Inc. Key Developments

Interim DIP Financing Approved for Violin Memory, Inc.

The US Bankruptcy Court gave an order to Violin Memory, Inc. to obtain DIP financing on an interim basis on February 16, 2017. As per the order, the debtor has been authorized to obtain a senior secured post-petition term loan financing in the amount of $3.10 million out of total facility of $8 million from VM Bidco LLC, acquisition vehicle of Soros Fund Management LLC. The DIP loan would carry an interest rate of LIBOR plus 9% p.a., with a LIBOR floor of 1% p.a., along with an additional 2% p.a. interest in the event of default. The DIP facility would mature either on August 30, 2017 or on the effective date of the plan or on the date of consummation of the sale of substantially all assets, whichever is earlier. The DIP facility would carry a fees of up to $0.25 million. Adequate protection would be provided to the DIP lenders in the form of super-priority administrative expense claims which is subject to a carve-out of $0.25 million towards unpaid professional fees / administrative expenses and first priority lien upon and security interest in the debtor’s collateral. Final hearing is scheduled for March 6, 2017.

Reorganization Plan & Related Disclosure Statement Filed by Violin Memory, Inc.

Violin Memory, Inc. filed plan of reorganization and related disclosure statement in the US Bankruptcy Court on February 15, 2017. As per the plan filed, administrative claims, priority tax claims, DIP claims and other provisions governing administrative claims shall be paid paid full in cash. Allowed Secured Claims and Allowed Priority Non-Tax Claim shall be paid full in cash. Allowed Quantum Claims of $25.65 million shall receive 100% of the equity in the Reorganized Debtor. Allowed General Unsecured Claims shall be paid pro-rata share of cash from the Distribution Trust of $13.50 million and will get recovery in the range of 8% to 9.5% of the claim. Subordinated Claims will be released and discharged without any distribution on the effective date. Intercompany Claims may be extinguished or compromised on the effective date. Equity Interests holders shall receive no distribution and equity shall be deemed automatically cancelled, released, and extinguished. The plan will be funded through conversion of DIP facility into exit facility, cash from plan sponsor of $15 million.

Notice of Sale Auction Filed by Violin Memory, Inc.

Violin Memory, Inc. filed a notice in the US Bankruptcy Court for the sale of substantially all its assets on January 27, 2017. The debtor conducted an auction between January 23-26, 2017 and selected VM Bidco LLC as the highest bidder for sale of substantially all its assets. The hearing to consider approval of the results will be held on January 30, 2017.

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Recent Private Companies Transactions

Type
Date
Target
Merger/Acquisition
January 30, 2017
--
Bankruptcy
December 14, 2016
--
 

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