On January 31, 2021, Knotel, Inc. and its U.S. subsidiaries (collectively, “Knotel”) filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware. On March 08, 2021, Knotel Canada, Inc. also filed a voluntary petition for relief and sought recognition of the proceedings in the Ontario Superior Court of Justice as foreign representative. The cases are being jointly administered under Case No. 21-10146.
Knotel filed for Chapter 11 to accomplish the sale of its business to an affiliate of Newmark Group, Inc. (“Newmark”) and the reorganization of its U.S. footprint in the most efficient manner. Knotel has filed a motion requesting approval of a stalking horse asset purchase agreement with Newmark and to initiate a process under Section 363 of the Bankruptcy Code. On March 19, 2021, the Bankruptcy Court entered an order approving and closing the sale of the Debtors’ assets.