iLearningEngines Voluntarily Initiates Chapter 11 Proceedings
iLearningEngines (NASDAQ: AILE), an AI-powered learning and work automation company, announced its voluntary initiation of Chapter 11 proceedings on December 20, 2024, in the Delaware Bankruptcy Court. The company plans to continue operating during the reorganization process, maintaining support for customers using its Applied AI platform.
Under Interim CEO Tom Olivier, who assumed the role on December 5, 2024, the company will seek Court approval for continued employee wage payments, benefits, and vendor compensation. Faegre Drinker Biddle & Reath LLP and ICR are serving as legal and strategic communications advisors, respectively.
iLearningEngines (NASDAQ: AILE), un'azienda di automazione del lavoro e dell'apprendimento potenziata dall'IA, ha annunciato l'avvio volontario del procedimento Chapter 11 il 20 dicembre 2024, presso il Tribunale fallimentare del Delaware. L'azienda prevede di continuare a operare durante il processo di riorganizzazione, mantenendo il supporto per i clienti che utilizzano la propria piattaforma di AI applicata.
Sotto la guida del CEO ad interim Tom Olivier, che ha assunto il ruolo il 5 dicembre 2024, l'azienda cercherà l'approvazione del Tribunale per i pagamenti continui dei salari dei dipendenti, dei benefici e dei compensi ai fornitori. Faegre Drinker Biddle & Reath LLP e ICR fungono rispettivamente da consulenti legali e di comunicazione strategica.
iLearningEngines (NASDAQ: AILE), una empresa de automatización del trabajo y aprendizaje impulsada por IA, anunció su inicio voluntario del procedimiento del Capítulo 11 el 20 de diciembre de 2024, en el Tribunal de Quiebras de Delaware. La empresa planea continuar operando durante el proceso de reorganización, manteniendo el apoyo a los clientes que utilizan su plataforma de IA aplicada.
Bajo la dirección del CEO interino Tom Olivier, quien asumió el cargo el 5 de diciembre de 2024, la empresa buscará la aprobación del Tribunal para los pagos continuos de salarios de los empleados, beneficios y compensaciones a proveedores. Faegre Drinker Biddle & Reath LLP e ICR actúan como asesores legales y de comunicaciones estratégicas, respectivamente.
iLearningEngines (NASDAQ: AILE)는 AI 기반의 학습 및 작업 자동화 회사로, 2024년 12월 20일 델라웨어 파산 법원에서 챕터 11 절차의 자발적 시작을 발표했습니다. 이 회사는 재조직 과정 동안 운영을 지속하며, 적용된 AI 플랫폼을 사용하는 고객에게 지원을 유지할 계획입니다.
2024년 12월 5일에 CEO 직무를 맡은 톰 올리비어(Tom Olivier)는 직원 급여, 복리후생 및 공급업체 보상을 지속적으로 지급하기 위해 법원의 승인을 구할 것입니다. Faegre Drinker Biddle & Reath LLP와 ICR는 각각 법률 및 전략적 커뮤니케이션 자문 역할을 하고 있습니다.
iLearningEngines (NASDAQ: AILE), une entreprise d'automatisation de l'apprentissage et du travail propulsée par l'IA, a annoncé le début volontaire de procédures du Chapitre 11 le 20 décembre 2024, devant le tribunal des faillites du Delaware. L'entreprise prévoit de continuer à fonctionner pendant le processus de réorganisation, en maintenant le soutien aux clients utilisant sa plateforme d'IA appliquée.
Sous la direction du PDG par intérim Tom Olivier, qui a pris ses fonctions le 5 décembre 2024, l'entreprise cherchera à obtenir l'approbation du tribunal pour le paiement continu des salaires des employés, des avantages et des compensations aux fournisseurs. Faegre Drinker Biddle & Reath LLP et ICR servent respectivement de conseillers juridiques et de communication stratégique.
iLearningEngines (NASDAQ: AILE), ein KI-gestütztes Unternehmen für Lern- und Arbeitsautomatisierung, gab am 20. Dezember 2024 den freiwilligen Beginn eines Chapter 11-Verfahrens beim Insolvenzgericht von Delaware bekannt. Das Unternehmen plant, während des Reorganisationsprozesses weiter zu arbeiten und den Kunden, die seine Angewandte KI-Plattform nutzen, Unterstützung zu bieten.
Unter der Leitung des Interim-CEOs Tom Olivier, der am 5. Dezember 2024 in seine Rolle eintrat, wird das Unternehmen die Genehmigung des Gerichts für die fortlaufenden Lohnzahlungen, Leistungen und Vergütungen an Anbieter suchen. Faegre Drinker Biddle & Reath LLP und ICR fungieren jeweils als rechtliche und strategische Kommunikationsberater.
- Company maintains operations during reorganization
- Continues support for existing customer base
- Seeks approval for normal employee and vendor payments
- Filed for Chapter 11 bankruptcy protection
- Financial restructuring indicates significant financial distress
- Recent CEO change suggests organizational instability
Insights
The Chapter 11 filing by iLearningEngines represents a critical financial restructuring moment that warrants careful analysis. The timing - just before year-end and shortly after installing an Interim CEO - suggests acute financial distress requiring immediate action. The "first-day motions" to maintain employee wages and vendor payments are standard but important for operational continuity.
The company's approach of maintaining business operations while restructuring debt follows the traditional "debtor-in-possession" model. However, the rapid timeline between the new CEO appointment (December 5) and bankruptcy filing (December 20) indicates pre-existing severe financial challenges that couldn't be resolved through conventional means.
For a
This bankruptcy filing sends concerning signals about the AI enterprise software sector, particularly companies focusing on learning automation. The failure of iLearningEngines to maintain solvency despite operating in the high-growth AI market points to potential structural issues in their revenue model or customer acquisition costs.
The emphasis on maintaining support for the "installed customer base" is important but challenging. Enterprise AI platforms require significant ongoing investment in development and maintenance. The restructuring must balance cost-cutting with maintaining essential R&D and customer support functions to prevent customer churn during this sensitive period.
This development could trigger increased scrutiny of other AI companies' financial metrics, particularly those that went public through SPAC mergers. Investors will likely focus more intensely on cash runway and path to profitability rather than just growth potential in the AI sector.
Company Seeks To Reorganize Its Finances While Continuing to Operate Its Business
BETHESDA, Md., Dec. 23, 2024 (GLOBE NEWSWIRE) -- iLearningEngines, Inc. (NASDAQ: AILE) (“iLearningEngines,” “ILE” or the “Company”), a leader in AI-powered learning and work automation, today announced that on December 20, 2024 the Company voluntarily initiated Chapter 11 proceedings in the United States Bankruptcy Court for the District of Delaware (the “Court”).
The Company will seek Court approval to continue operating on a business as usual basis during the proceedings and intends to continue to provide support to its installed customer base that relies on its Applied AI platform to run their businesses.
“We appreciate the continued support of our customers, partners and employees, and our hope is that this process will put us in a better position to serve those stakeholders going forward, allowing for a stronger, more robust business over the long-term,” said iLearningEngines Interim CEO Tom Olivier. “Since taking over as Interim CEO on December 5, 2024, I have met with a number of our distribution partners and customers. We will continue to work closely with them as we work through this process.”
Additional Information
In coming days, the Company will file certain customary motions seeking Court approval to support its operations during the process, including the continued payment of employee wages and benefits as well as compensating vendors and suppliers under normal terms for goods and services provided on or after the filing dates.
Filings in the Chapter 11 Case and information about the Chapter 11 Case, including as-entered orders of the Bankruptcy Court, may be viewed for a fee at the website maintained by the Bankruptcy Court at http://www.deb.uscourts.gov/, by following the directions for accessing the ECF system on such website.
Faegre Drinker Biddle & Reath LLP is serving as legal advisor to iLearningEngines, and ICR is serving as the Company’s strategic communications advisor.
For more information about iLearningEngines, please visit: www.ilearningengines.com.
Cautionary Note Regarding Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 that involve substantial risks and uncertainties. All statements, other than statements of historical fact included in this press release, are forward-looking statements. Forward looking statements generally are accompanied by words such as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” expect,” “should,” “would,” “plan,” “predict,” “potential,” “seem,” “seek,” “future,” “outlook,” the negative forms of these words and similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding: actions to be taken under the Chapter 11 Case and the Debtors’ ability to continue to operate the business and support the Company’s customers during the Chapter 11 Case proceedings. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of iLearningEngines’ management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as and must not be relied on by an investor as a guarantee, an assurance, a prediction, or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions this press release relies on. Many actual events and circumstances are beyond the control of iLearningEngines. These forward-looking statements are subject to a number of risks and uncertainties, including risks related to the bankruptcy process; the Debtors’ ability to obtain approval from the Bankruptcy Court with respect to motions or other requests made to the Bankruptcy Court throughout the course of the Chapter 11 Case; the ability of the Debtors to agree to, confirm and consummate a plan of reorganization; the effects of the Chapter 11 Case on the liquidity, results of operations and business of the Company and its subsidiaries; the possibility and timing of a foreclosure auction of Company assets; the Company’s ability to negotiate with its secured lenders or enter into agreements for strategic alternatives; the Company’s ability to continue as a going concern during the Chapter 11 Case and going forward; the potential for governmental investigations and inquiries, regulatory actions and lawsuits; the ongoing Investigation being conducted by a Special Committee of iLearningEngines’ Board of Directors with the assistance of outside counsel and the outcome of such Investigation, including the extent of any impact on iLearningEngines’ reported historical financial statements; the completion of the review and preparation of iLearningEngines’ financial information and internal control over financial reporting and disclosure controls and procedures and the timing thereof; the discovery of additional information; potential further delays in iLearningEngines’ financial reporting, including as a result of unanticipated factors; changes in domestic and foreign business, market, financial, political, and legal conditions; iLearningEngines’ failure to realize the anticipated benefits of its business combination with Arrowroot Acquisition Corp.; risks related to the rollout of iLearningEngines’ business and the timing of expected business milestones; iLearningEngines’ dependence on a limited number of customers and partners; iLearningEngines’ ability to obtain sufficient financing to pay its expenses incurred in connection with its operations; the ability of iLearningEngines to issue equity or equity-linked securities or obtain debt financing in the future; risks related to iLearningEngines’ need for substantial additional financing to implement its operating plans, which financing it may be unable to obtain, or unable to obtain on acceptable terms; iLearningEngines’ ability to maintain the listing of its securities on Nasdaq or another national securities exchange; the effects of competition on iLearningEngines future business and the ability of iLearningEngines to grow and manage growth profitably, maintain relationships with customers and suppliers and retain its management and key employees; risks related to political and macroeconomic uncertainty; the outcome of any legal proceedings that may be instituted against iLearningEngines or any of their respective directors or officers, including litigation related to the business combination with Arrowroot Acquisition Corp.; the impact of the global COVID-19 pandemic on any of the foregoing risks; and those factors discussed in the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2024, filed with the SEC on August 13, 2024, and its subsequent filings with the SEC. If any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that iLearningEngines does not presently know, or that iLearningEngines does not currently believe are material, that could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect iLearningEngines’ expectations, plans, or forecasts of future events and views as of the date of this communication. iLearningEngines anticipates that subsequent events and developments will cause iLearningEngines’ assessments to change. However, while iLearningEngines may elect to update these forward-looking statements at some point in the future, iLearningEngines specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing iLearningEngines’ assessments as of any date subsequent to the date of this communication. Accordingly, undue reliance should not be placed upon the forward-looking statements.
IR & Press Contacts:
Investor Contact:
Kevin Hunt, ICR Inc.
iLearningEnginesIR@icrinc.com
Press Contact:
Dan McDermott, ICR Inc.
Dan.McDermott@icrinc.com
FAQ
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