A California-based cloud technology developer CalAmp Corp. filed for Chapter 11 bankruptcy on Monday in Delaware bankruptcy court, stating that it entered a restructuring deal with lender Lynrock Lake Master Fund LP, which would swap approximately $229 million of secured notes into equity interests in the reorganized business.

CalAmp Corp. Files for Chapter 11 Bankruptcy

In a petition filed Monday, CalAmp's Chief Financial Officer, Jikun Kim, said the company held about $355 million in debts along with $281 million in assets as of November 30, 2023. The company added that Lynrock will become the principal equity owner and take the company private.

"The savings from eliminating the interest on the debt and the overhead of being a public company will allow us to invest more significantly in the numerous opportunities we see to support our customers' needs," said Chris Adams, President and Chief Executive Officer of CalAmp in a press release on Monday.

The company added that its "U.S. and international operations will continue without disruption and the partners will be paid in the ordinary course of business."

CalAmp said it faced an "extended period of lackluster performance" since its pivot to a SaaS-based model in the mid-2010s. It employed various strategies to improve revenue, including providing three-year payment terms to customers. However, excess inventory and post-COVID-19 market conditions led to a steep decline in revenue, resulting in over a $130 million annualized decline and making it unable to continue business.

"Despite aggressive cost reduction efforts through reducing its workforce and other measures, revenues continued to decline faster than the company could reduce its costs," Kim said in the declaration.

A representative of CalAmp didn't immediately respond to a request for comment on Monday.

CalAmp Corp. is represented by Gregory Joseph Flasser, L. Katherine Good, and Aaron H. Stulman of Potter Anderson & Corroon LLP.

The case is In re: CalAmp Corp., case number 24-11136, in the U.S. Bankruptcy Court for the District of Delaware.