Grabit(TM) Inc. Enters into Restructuring Support Agreement
WILMINGTON, Del., Dec. 18, 2019 /PRNewswire/ -- Grabit™ Inc., an intelligent automation systems provider to the soft goods manufacturing and warehouse logistics industries, today announced that it has reached an agreement with its manufacturing partner and primary senior secured lender, Burke Porter Group ("BPG"), on the terms of a comprehensive reorganization and recapitalization.
BPG, through its financing subsidiary, BPG International Finance Co. LLC, provided a senior secured loan to Grabit in June 2018. The purpose of the loan was to help advance electro-adhesion technologies for customers of both Grabit and BPG.
While Grabit continues to advance its electroadhesion activities, delays in certain projects have caused an inability to perform under the terms of the BPG loan. As a result, Grabit and BPG have negotiated a Restructuring Support Agreement ("RSA") that provides for a restructuring through a voluntary pre-negotiated plan of reorganization under Chapter 11 of the U.S. Bankruptcy Code. Grabit, BPG, along with a majority of Grabit preferred shareholders and convertible noteholders, have entered into a consensual arrangement allowing BPG to continue supporting Grabit, its customers and its advanced product development plans.
Grabit CEO, Greg Miller noted, "After the reorganization, Grabit will enjoy expanded scale benefits as part of the much larger Burke Porter Group global platform."
The Grabit restructuring will have no short or long-term effect on BPG or its subsidiary companies and provides a better avenue for BPG to support Grabit's short-term and long-term initiatives.
BPG CFO, Daniel Webber states, "Grabit will emerge restructuring as a strong company able to continue delivering its innovative products and services."
Once the reorganization is completed there will be additional information regarding future expansion and operational plans for Grabit and BPG.
About Grabit™ Inc.
Grabit™ is a robotic and machine learning company leveraging proprietary electro-adhesion technology to revolutionize consumer and industrial products manufacturing and warehouse logistics.
About Burke Porter Group
Around the world, team members of the Burke Porter Group are committed to serving industrial transformation. We provide the highest quality products, customer service, and continuously seek new ways to help our customers meet the demands of change. We are people and machines that think. Advancing the Machine™.
SOURCE Grabit Inc.