PITTSBURGH--(BUSINESS WIRE)--DynaVox Inc. announced today that its indirect subsidiary, DynaVox Intermediate, LLC, filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code on April 6, 2014 in the United States Bankruptcy Court for the District of Delaware (Case No. 14-10785). DynaVox Inc. also announced today that both DynaVox Inc. and its direct subsidiary, DynaVox Systems Holdings, LLC, each filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code in the Delaware Court on April 7, 2014 (Case Nos. 14-10791 and 14-10790, respectively).
As previously announced, the membership interests that DynaVox Intermediate, LLC owns in DynaVox Systems, LLC were the subject of a Notification of Disposition of Collateral (the “Notice”) issued by JEC-BR Partners, LLC (“JEC”), a senior secured lender to certain affiliates of DynaVox Inc. who asserts a lien on all of such membership interests (the “Membership Interests”). The Notice provided that JEC intended to sell all of the Membership Interests at a public auction originally scheduled to occur on Monday, March 31, 2014, 10:00 (Eastern) at the offices of JEC, 68 Mazzeo Drive, Randolph, Massachusetts 02368. The auction was later postponed to April 7, 2014 by JEC. The commencement of the above-referenced Chapter 11 cases acts as a stay prohibiting the public auction sale from proceeding.
DynaVox Inc., DynaVox Intermediate, LLC and DynaVox Systems Holdings, LLC (collectively, the “Debtors”) filed their chapter 11 petitions to enable a more orderly sale of the Membership Interests. On April 4, 2014, the Debtors received a non-binding acquisition proposal from Tobii Technology AB, a Swedish corporation (“Tobii”), to acquire the Membership Interests or the operating assets of DynaVox Systems, LLC and its subsidiaries for an amount in excess of the obligations to JEC, subject to, among other things, the completion of due diligence. Tobii has also committed to provide the Debtors with a debtor-in-possession loan facility to fund the Debtors’ cases through the due diligence process and any subsequent sale to Tobii, subject to certain terms and conditions and approval by the Bankruptcy Court.
DynaVox Systems, LLC and its operating subsidiaries did not file chapter 11 and are not in bankruptcy. Rather, they are operating in the normal course of business.
The first hearing before the Honorable Peter J. Walsh, United States Bankruptcy Judge, is scheduled to occur on April 9, 2014 at 11:00 a.m. (EST), in Courtroom #2, 824 North Market Street, Wilmington, Delaware 19801.