Technicolor has reached an agreement with its creditors on a plan to safeguard the company.
In a meeting held over the weekend, convened by the Judicial Administrator, the lenders’ committee approved the draft safeguard plan at a majority of 100 per cent of the creditors who cast a vote.
The plan will now be put to the company’s shareholders at a meeting on 20th July, which will be held virtually.
In a statement, Technicolor said “a positive shareholder vote in favour of all the resolutions at this meeting, are of the utmost importance for the company’s future, as this will facilitate the implementation of the safeguard plan, opening a new chapter to the company’s development.”
However, Technicolor warned if the plan is not approved by shareholders it will have “no choice but to ask the court to initiate receivership or liquidation proceedings.”
If that were to be the case, all the company’s assets could be attributed or sold, allowing the continuation of Technicolor’s activities (at the subsidiaries’ level) and the trading with clients and suppliers, thanks to a reinforced financial structure. However, in such situation, the shares of the company would lose all or quasi all of their value.