Debtor EP Technology Corporation USA filed with the U.S. Bankruptcy Court for the Central District of Illinois, Urbana Division, a Disclosure Statement for Plan of Reorganization dated May 28, 2020.
The Plan provides for a comprehensive restructuring of the Debtor’s obligations, preserves the going-concern value of the Debtor’s business, maximizes recoveries for creditors, and preserves dozens of jobs. If confirmed, the Plan will substantially reduce the obligations on the Debtor’s balance sheet, provides the Debtor with cash needed to fund distributions to eligible creditors, and includes working capital for the Debtor to fund ongoing operations.
Prior to filing the Plan, the Debtor engaged in good-faith negotiations with its key stakeholders, including: (a) the Debtor’s secured lender, UPS Capital Corporation; (b) Zmodo Technology Shenzhen Corporation, Ltd., the Debtor’s ultimate corporate parent; (c) Kevin Wan, the Debtor’s president and a shareholder of Zmodo; and (d) AIZON Technologies (Shenzhen) Co. Ltd., an indirect subsidiary of Zmodo and an affiliate of the Debtor (“AIZON,” and together with UPS, Zmodo, and Mr. Wan, the “RSA Parties”).
Class 3 General Unsecured Claims will receive, payment in full in Cash of the unpaid portion of such holder’s Allowed General Unsecured Claim on the later of the Effective Date and such date such General Unsecured Claim becomes an Allowed General Unsecured Claim.
Class 6 Interests in EP Technology will have the Holder’s interest reinstated.
Distributions under the Plan will be funded with, or effectuated by, (1) available cash and (2) the exit facility.
The Debtor currently projects that its available cash will be approximately $580,000 as of the assumed Effective Date. This estimate is based on the Debtor’s financial projections. The Debtor anticipates closing on an Exit Facility at the end of February 2021. The Debtor has engaged in preliminary discussions with potential exit lenders.
The Plan provides that all the Debtor’s assets will vest in the Reorganized Debtor, free and clear of all liens, claims, interests, and encumbrances, except as otherwise provided in the Plan or confirmation order.
A full-text copy of the Disclosure statement dated May 28, 2020, is available at https://tinyurl.com/y7hqo778 from PacerMonitor at no charge
Counsel for EP Technology:
William J. Factor
Angela M. Snell
105 W. Madison Street, Suite 1500
Chicago, IL 60602
Tel: (847) 239-7248
Fax: (847) 574-8233
About EP Technology
Founded in 1997, EP Technology Corporation U.S.A. is a developer and manufacturer of video surveillance products, digital video recorders, security cameras.
EP Technology Corporation sought Chapter 11 protection (Bankr. C.D. Ill. Case No. 19-90927) on Sept. 23, 2019 in Urbana, Illinois. In the petition signed by Kevin Wan, president, the Debtor was estimated to have assets at $10 million to $50 million and liabilities within the same range. Judge Mary P. Gorman oversees the Debtor’s case. FactorLaw is the Debtor’s counsel.