Movella Holdings completes restructuring, shifts ownership

Published 06/05/2025, 16:36
Movella Holdings completes restructuring, shifts ownership

NEW YORK - Movella Holdings Inc. has finalized a corporate restructuring process that transfers the ownership of its subsidiary, Movella Inc., to a group of secured lenders, the company announced today. The restructuring agreement, which addresses defaults under a previous note purchase agreement, results in the release of Movella Holdings from its guarantee obligations and the issuance of new equity and a replacement note to the lenders.

The restructuring transactions, executed in compliance with Delaware’s corporate law, have led to the establishment of Movella Holdings NewCo, LP, a Delaware limited partnership, now holding the equity of Movella. This entity, affiliated with the FP Shareholders, has also entered into an earnout agreement with Movella Holdings, potentially allowing for earnout payments contingent upon the sale of New Parent within a seven-year period.

Movella Holdings, which has rebranded as MVLA Holdings, Inc., retains no material assets post-restructuring other than the earnout agreement. The company’s equity holders prior to the restructuring remain as such following the transaction. The restructuring has also prompted a change in the board of directors, with the appointment of a new sole director.

Previously, Movella Holdings had suspended its SEC reporting obligations and delisted its stock from the Nasdaq Global Market. The company has ceased to be a public entity as of April 30, 2025.

The restructuring does not guarantee earnout payments, which are subject to the future sale of New Parent and the attainment of specific sale thresholds. Movella Holdings’ sole material asset, the earnout agreement, if realized, is intended to benefit the company’s equity holders after deducting related costs.

This news is based on a press release statement and reflects the completion of a significant corporate restructuring for Movella Holdings, with potential future implications for its equity holders.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.