It's official.....we loose it all!
InPhonic Signs Purchase Agreement with Versa Capital and Files Voluntary Petition for Chapter 11 to Facilitate Transaction - Announces Sale to Versa Capital - Secures DIP Financing - Business as Usual for Customers and Partners
Nov 8, 2007
WASHINGTON, D.C. – November 8, 2007 – InPhonic, Inc. (NASDAQ: INPC), a leading online seller of wireless services and products, today announced that it has entered into an agreement to sell substantially all of its assets to an affiliate of Versa Capital Management, a Philadelphia based private equity firm.
In order to implement the sale, InPhonic filed a voluntary petition for reorganization under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware. InPhonic’s Board of Directors has unanimously determined that the Chapter 11 process will provide an efficient environment for completion of the sale. The sale is subject to higher and better offers, and InPhonic anticipates completing the sale before the end of the year, subject to court approval. InPhonic will continue to conduct normal business operations at all of its facilities consistent with its obligations as a Chapter 11 debtor-in-possession.
Versa will also be providing a Debtor-in-Possession (“DIP”) financing facility to provide working capital and financial resources necessary to fund the transition in operations to new ownership pending court approval of the sale to Versa.
The Company’s recently appointed management team believes that this expedited process is necessary to promptly institute its improved business plan and that the filing and sale are in the best long-term interest of the Company, as well as its customers, partners, vendors and employees. Lazard Middle Market, the Company’s financial advisor, is assisting the board through this process.
"We intend to use this filing to take the actions necessary to position InPhonic for future success. We want to assure our customers, our employees and our partners that InPhonic is operating business as usual during this transition," said Andy Zeinfeld, InPhonic’s Chief Executive Officer. "I am confident in InPhonic’s business model and with the cost-cutting measures and profit-driving initiatives we have implemented across the organization. The new direction I have set is comprehensive and our dedication to customer, partner and employee satisfaction is unwavering. InPhonic plays a critical role as a leader in the wireless marketplace and through this sale to Versa, it will operate on stable financial footing and its leading role will be preserved."
Ken Schwarz, InPhonic’s Chief Financial Officer added, "This sale will strengthen the Company and foster a sustained turnaround for InPhonic. This milestone marks a fundamental, comprehensive and systemic change at InPhonic. Our customers, partners and employees want the Company to succeed because of InPhonic’s significant value in the wireless marketplace. We expect to proceed quickly with this sale and that the business will have a significantly improved balance sheet, greater operating flexibility and a swift path to profitability.”
The Company expects that shares of its common stock will have no value as a result of the Chapter 11 filing.
The filings were made today in the federal courts in Wilmington, Delaware.
More information about InPhonic’s reorganization is available at a special website: www.inphonic.com/reorg.
