In a courtroom showdown reminiscent of a high-stakes poker game, AgileThought Inc., the tech company navigating Chapter 11, won a major victory as a Delaware bankruptcy judge granted preliminary approval for them to secure nearly $23 million in debtor-in-possession (DIP) financing. This unexpected turn of events unfolded after AgileThought brokered an agreement with a previously objecting lender and initiated settlement discussions with unsecured creditors.
AgileThought $23M DIP Approval : Interim Approval with a Silver Lining
U.S. Bankruptcy Judge J. Kate Stickles dealt the cards, giving AgileThought the green light for an interim DIP financing arrangement, made possible through the cooperative efforts of first-lien lender Blue Torch Finance. This package included a surprising twist, with the second-lien lender, formerly in opposition, pledging not to obstruct potential resolutions with the unsecured creditors’ committee.
“We wanted to at least put that issue behind us in anticipation of next week having a consensual resolution with the committee,” stated Blue Torch counsel Gregg Galardi, underscoring the ever-changing nature of this legal duel.
AgileThought’s Battle in the Bankruptcy Arena
AgileThought Inc. and over 30 affiliated companies entered the arena of Chapter 11 bankruptcy, carrying a heavy load of $110 million in prepetition debt. Their prepetition plans to sell off assets were derailed when prospective buyers were spooked by a contentious $203 million tax bill afflicting their Mexican affiliates.
