Kit Digital Files for Bankruptcy After Shareholder Accord

Kit Digital Inc., 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).

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