Near Intelligence Files For Chapter 11 Protection And Enters Into Agreement To Sell Its Business; Receives Up To $16M In Debtor-In-Possession Financing From Its Secured Lenders
Portfolio Pulse from Benzinga Newsdesk
Near Intelligence, Inc. (NASDAQ:NIR), a data intelligence company, has filed for Chapter 11 bankruptcy and plans to sell its assets. The company secured up to $16 million in Debtor-in-Possession (DIP) financing from Blue Torch Finance LLC to maintain operations during the sale process. Near has entered into a 'stalking horse' asset purchase agreement with Blue Torch, with a credit-bid of not less than $50 million. The sale is subject to higher bids and court approval under Section 363 of the Bankruptcy Code.
December 08, 2023 | 8:42 pm
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Near Intelligence, Inc. has filed for Chapter 11 bankruptcy and is in the process of selling its assets, with secured financing from Blue Torch. The company's stock may face volatility due to the uncertainty of the bankruptcy outcome and potential changes in ownership.
Filing for Chapter 11 bankruptcy typically has a negative impact on a company's stock price due to the uncertainty it creates about the company's future. The 'stalking horse' bid sets a floor for the asset sale, but the final outcome and potential changes in ownership could lead to further stock price volatility. The DIP financing indicates that the company has some support from its lenders, which may mitigate some negative impact.
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