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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.
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