Irving-based AgileThought Inc. filed for Chapter 11 bankruptcy and announced it had received additional working capital in a go-private transaction.
AgileThought, which went public in 2021 in a SPAC merger, said the 90-day Chapter 11 reorganization under the U.S. Bankruptcy Code is “a proven mechanism that will allow it to execute the transaction.”
The global provider of digital transformation services, agile software development, and next-generation technology solutions said the deal is underpinned by an asset purchase agreement with affiliates of New York City-based Blue Torch Finance LLC, AgileThought’s senior secured lenders.
“Post-reorganization, we will emerge with significantly reduced debt and a private ownership structure, fortifying an even stronger and healthier AgileThought,” CEO Manuel Senderos said in a statement.
“We’re excited about this transaction and what it means for our enhanced ability to deliver for our clients, people, and partners, AgileThought,” Senderos added. “This strategic financial reorganization will pair our already robust and thriving organization with a capital structure that matches, and this move will allow us to operate even more efficiently.”
Blue Torch will provide roughly $22 million in new-money financing, subject to court approval. AgileThought said that its day-to-day operations will continue seamlessly and without disruption.
The company said a Blue Torch affiliate has agreed to serve as the stalking-horse buyer of substantially all of the company’s assets, subject to several factors, including higher or better offers.
The proposed transaction, however, is subject to court approval and other conditions, AgileThought said.
Aiming to enhance services and support to clients
AgileThought is a pure-play provider of “agile software development” at scale, end-to-end digital transformation, and technology consulting services with diversity across markets and industries.
The company had an initial market value of $491 million when it went public.
According to its second-quarter financial report, AgileThought reported $38.3 million in revenue, down 17% year over year from $46.2 million in the same quarter of 2022.
Blue Torch Capital said it is a middle market direct lender providing bespoke credit solutions to stakeholders and management teams of companies requiring capital support for growth, acquisitions, operational challenges, and financial distress.
The firm provides solutions including first lien term loan, asset-based revolver, first-in-last-out, and second lien term loans generally from $20 million to $200 million.
Hughes Hubbard & Reed LLP and Potter Anderson & Corroon LLP are serving as legal advisor to AgileThought, Teneo Capital LLC is serving as financial advisor, and Guggenheim Securities, LLC is serving as investment banker.
Ropes & Gray LLP and FTI Consulting are serving as legal and financial advisers to Blue Torch.
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