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. The cases are being jointly administered under Case No. 21-10146. The filing does not include Knotel’s international operations.
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.
Knotel has obtained debtor-in-possession (“DIP”) financing from Newmark of approximately $20 million in cash. This DIP financing will provide sufficient liquidity to support Knotel’s day-to-day operations during the process.