Arecont Vision, a provider of IP-based megapixel camera and video surveillance solutions, has filed for Chapter 11 bankruptcy protection with a plan to reorganize its business under new ownership. Arecont Vision, will execute an asset purchase agreement with an affiliate of Turnspire Capital Partners, under which Turnspire will acquire substantially all of the company’s assets, according to an announcement.
The company states the bankruptcy protection, filed in U.S. Bankruptcy Court in Delaware, will enable it to pursue accelerated development of new video surveillance products and better meet the needs of its customers.
“Through this transaction, Arecont Vision will shed its debt and make bolder decisions to invest in our future versus maintain the status quo. We are excited to have found a partner in Turnspire who shares our vision and will ensure an exciting future for the company to the benefit of our customers, employees, and partners,” said Raul Calderon, COO and general manager, Arecont Vision. Calderon said manufacturing, customer service and sales activities will continue uninterrupted.
“Our employees will receive their wages and benefits as before, and our own vendors and suppliers will be paid in the ordinary course of business going forward,” he said. According to the announcement, in the coming days the company will file a bid procedure and sale motion along with the purchase agreement with the bankruptcy courts. Operations will be supported by debtor-in-possession (DIP) financing provided by Arecont Vision’s current secured lenders. The Turnspire bid will be subject to an auction during which other offers can be considered
