KRyS Global is Investment Banker in Fuhu Proposed Sale
Fuhu, Inc., the creator of the award-winning nabi® tablet and the foremost innovator in technology solutions for families, announced today that it has agreed upon the principal terms of an asset acquisition by Mattel, Inc. In order to proceed with a sale, Fuhu commenced voluntary proceedings under Chapter 11 in the U.S. Bankruptcy Court in Delaware. The acquisition will be subject to final documentation, customary conditions to closing, and overbidding as it is proposed to be effected through a sale process overseen and approved by bankruptcy court.
“We expect to be able to satisfy ongoing obligations to customers, vendors and employees pending the sale and ensure the bright future of the nabi franchise with the proposed acquisition and with the protections afforded by the Bankruptcy Code” said Jim Mitchell, Chief Executive Officer of Fuhu, “Most importantly, we expect to continue to ship our award-winning nabi products to our customers, provide support and troubleshooting to our customers, honor existing nabi Shop gift cards, and continue to develop our award-winning software, including nabi Pass, the kid-safe app and content subscription service.”
The Company carefully examined the various alternatives available and concluded that a commencement of a case under chapter 11 the bankruptcy code provides the most effective and efficient process to enhance the value of the Company’s assets for all stakeholders and continue operating the business in normal course for its customers and consumers.
Bryan Cave LLP and Pachulski Stang Ziehl & Jones LLP are serving as Fuhu’s legal advisors, FTI Consulting, Inc. as its financial advisor, and KRyS Global USA as its investment banker.
More details and up to date information on the proceeding are available at http://www.fuhu.com/restructuring
Children’s Tech Company Fuhu Files for Bankruptcy Protection
Published in Nasdaq, 7th December, 2015.
By Dow Jones Business News
The bankruptcy filing followed quarrels with manufacturers that Fuhu blamed for late delivery of the company’s age- specific technology products and a bad holiday season last year.
The El Segundo, Calif., company says its top lender, an affiliate of Tennenbaum Capital Partners, has been sweeping cash from its accounts to cover a claimed debt of $6.5 million. That action left Fuhu with insufficient money to continue to operate, court papers say.
The deal with Mattel is subject to definitive documentation, and will be tested through a competitive process in bankruptcy, according to papers filed in the U.S. Bankruptcy Court in Wilmington, Del.
The company has sold more than four million children’s tablets under the brand name nabi, through outlets including Target, Best Buy, Costco Wholesale, Toys R’ Us and Wal-Mart.
Founded in 2008, Fuhu had revenue of $195 million in 2013, and was named Inc. Magazine’s fastest-growing company that year and the following year.
Write to Peg Brickley at peg.brickley@wsj.com