Relevant Document:Voluntary Petition
Stream TV Networks, Inc. a Philadelphia-based media technology company founded in 2009 to develop and commercialize technology that would enable viewers to watch 3D content without 3D glasses, filed for chapter 11 protection today in the Bankruptcy Court for the District of Delaware. The company reports $100 million to $500 million in both assets and liabilities. The debtor is represented by Dilworth Paxson in Wilmington, Del. The case number is 21-10433.
The Delaware Chancery Court issued an
opinion in December over an agreement through which Stream agreed to transfer all of its assets to Seecubic, Inc., a newly formed entity controlled by its secured creditors. According to the opinion, by the time the May 2020 agreement was entered into, Stream had defaulted on more than $50 million in debt to its secured creditors, owed an additional $16 million to trade creditors and “could not pay its bills as they came due.” The opinion adds that “by any measure, Stream was insolvent and failing.” “By all accounts, the technology is promising, even revolutionary, but Stream does not yet have a product,” the opinion continues, adding that 11 years after its founding, Stream remains a pre-revenue, development-stage company. The opinion says that Stream has raised approximately $160 million from third party investors since 2009 in the form of a combination of debt and equity, and its senior secured creditor is SLS Holdings VI, LLC, which lent $6 million. Stream's junior secured creditor is Hawk Investment Holdings Limited, which lent more than £50 million, plus another $1.3 million through a series of junior secured notes.
Reorg First Day will provide a full summary once the first day briefing is complete.