Pasadena-Based Data Intelligence Company Near Files for Bankruptcy

Near Intelligence, Inc. (NASDAQ:NIR), a privacy-led data intelligence company based in Pasadena which went public last March, has filed for Chapter 11 bankruptcy protection and plans to sell its business. 

A statement issued by the company also said it has secured up to $16 million in debtor-in-possession (DIP) financing from its existing lenders, affiliates of Blue Torch Finance LLC.

The company and its subsidiaries have initiated a Chapter 11 proceeding in the United States Bankruptcy Court for the District of Delaware and will seek to sell their assets through a court-supervised sales process. The company’s existing secured lenders have submitted a binding “stalking horse” bid to acquire their assets.

The company has also filed various “first day” motions with the Bankruptcy Court to enable them to transition into Chapter 11 while continuing to operate their business without material disruption. This includes seeking authority to obtain DIP financing and pay employee wages and benefits without interruption.

The company’s existing secured lenders are supportive of the Chapter 11 proceeding and court-supervised sale process. They have committed to provide the company with DIP financing.

Near has obtained a multi-draw DIP financing facility in an aggregate principal amount of up to $16 million from its existing secured lenders. Upon approval by the Bankruptcy Court, the DIP financing is expected to provide Near with the necessary liquidity to operate in the normal course and meet obligations to its employees, vendors, and customers incurred during the Chapter 11 proceeding while executing on the sales process, a statement said.

Prior to the Chapter 11 filing, the company entered into a “stalking horse” asset purchase agreement with Blue Torch, to acquire substantially all of the assets of the company in the form of a credit-bid of not less than $50 million. The transaction is part of a sale process under Section 363 of the Bankruptcy Code that will be subject to compliance with agreed upon and Bankruptcy Court-approved bidding procedures allowing for the submission of higher or otherwise better offers, and other agreed-upon conditions.

Near is represented by Willkie Farr & Gallagher LLP and Young Conway Stargatt & Taylor, LLP, as counsel, Ernst & Young LLP as restructuring advisor and GLC Advisors & Co., LLC as restructuring investment banker. Additional information can be found at https://cases.ra.kroll.com/near/