Bankruptcy: DZS INC.
Form Type: 8-K
Filing Date: 2025-03-14
Corporate Action: Bankruptcy
Type: New
Accession Number: 000110168025000021
Filing Summary: On March 14, 2025, DZS Inc. (the 'Company') and its wholly-owned subsidiaries DZS Services Inc. and DZS California Inc. filed a voluntary petition for relief under chapter 7 of the Bankruptcy Code in the United States Bankruptcy Court for the Eastern District of Texas. This decision followed a thorough assessment of the Company's financial and operational condition, where various strategic alternatives were considered including obtaining additional financing and pursuing a going concern sale. The Company ceased substantially all operations on the same day. A chapter 7 trustee will be appointed to manage the assets and liabilities of DZS Inc. and its subsidiaries, thus eliminating the authority of the Company's Board of Directors. It is expected that the holders of the Company's common stock may not receive any payment following the bankruptcy proceedings. The filing may trigger events of default under existing contracts and agreements, potentially leading to the acceleration or termination of obligations under these instruments. Furthermore, the Company will not be able to file its Annual Report on Form 10-K for the fiscal year ended December 31, 2024 due to the ongoing bankruptcy proceedings.
Document Link: View Document
Additional details:
Date Of Report: 2025-03-14
Bankruptcy Code: Chapter 7
Assets Liabilities Control: Trustee appointed to assume control
Operations Status: Ceased substantially all operations
Impact On Common Stock: Unlikely to receive payment
Audit Status: Audit not completed for fiscal year ended December 31, 2024
Form Type: 8-K
Filing Date: 2025-03-04
Corporate Action: Bankruptcy
Type: Update
Accession Number: 000110168025000019
Filing Summary: DZS Inc. announces its intent to evaluate strategic alternatives to maximize value for stakeholders, with the potential for a sale of the company or assets, or seeking chapter 11 bankruptcy protection to facilitate reorganization or sale. The evaluation will be assisted by legal and financial advisors amid limited cash reserves, and a cost-reduction plan will be implemented. Baker Botts L.L.P. is retained as legal advisor and Bowen Inc. as financial advisor. The company's ongoing ability to continue operations and pay creditors is uncertain, and the impact of the COVID-19 pandemic may further complicate these issues.
Document Link: View Document
Additional details:
Item: strategic_alternatives
Item Evaluated: potential_sale
Item Advisors: Baker Botts L.L.P.
Item Advisors: Bowen Inc.
Item Cautions: forward_looking_statements
Comments
No comments yet. Be the first to comment!