The company’s debts include $70.7 million in secured obligations to Anglo American and approximately $27 million in unsecured trade debt.
Bankruptcy Auction Details
The auction process, anchored by Cummins’ stalking horse bid, aims to ensure a competitive sale. Anglo American has agreed to subordinate its claims to prioritize the sale’s success, which is intended to pave the way for an orderly wind-down.
Legal and Financial Advisors
First Mode has enlisted a team of advisors to navigate the bankruptcy and sale process. PJT Partners serves as its investment banker, with M3 Partners providing financial advisory services. Legal representation is being handled by:
Latham & Watkins LLP: Ray C. Schrock, Annemarie V. Reilly, Brian S. Rosen, Caroline Reckler, and Jeffrey T. Mispagel
Young Conaway Stargatt & Taylor LLP: Michael R. Nestor, Kara Hammond Coyle, and Joseph M. Mulvihill
Next Steps
The bankruptcy court will oversee the asset auction and the subsequent liquidation plan. If the sale is successful, it could allow First Mode to recover value for creditors while transitioning its technology to a new owner.
