Prior To The Chapter 11 Filing, Company Entered Into A "Stalking Horse" Asset Purchase Agreement With Blue Torch, To Acquire Substantially All Of The Assets Of Near Intelligence In The Form Of A Credit-Bid Of Not Less Than $50M
Portfolio Pulse from Benzinga Newsdesk
Near Intelligence, prior to its Chapter 11 bankruptcy filing, has entered into a 'Stalking Horse' asset purchase agreement with Blue Torch. Blue Torch will acquire substantially all assets of Near Intelligence through a credit-bid of not less than $50 million.
December 08, 2023 | 8:43 pm
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Near Intelligence has agreed to a 'Stalking Horse' bid from Blue Torch for a credit-bid of $50M+ as it approaches Chapter 11 bankruptcy.
The news of Near Intelligence entering into a 'Stalking Horse' agreement with Blue Torch indicates a significant step in the bankruptcy process, which typically has a negative impact on the stock price due to the uncertainty and potential dilution of shareholder value. The credit-bid of $50 million sets a minimum purchase price for the assets, which may be seen as a valuation benchmark. However, the impending Chapter 11 filing suggests financial distress, which is likely to lead to a decrease in NIR's stock price in the short term.
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