IronNet Inc. Files Voluntary Chapter 11 Petitions

Rhea-AI Summary

IronNet, Inc. has filed for Chapter 11 bankruptcy and is undergoing a plan of reorganization. They have secured a $10M debtor-in-possession financing facility from ITC Global Advisors. The company has also received approval from the Court to continue its operations and reinstate its cloud computing services with Amazon Web Services.

MCLEAN, Va., Nov. 3, 2023 /PRNewswire/ -- IronNet, Inc. ("IronNet" or "the Company") stabilizes operations and continues plan of reorganization under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware (the "Court" and such cases, the "Chapter 11 Cases" or "Restructuring").

On October 10, 2023, IronNet entered into a binding term sheet (the "Term Sheet") with ITC Global Advisors ("ITC") for a $10M debtor-in-possession financing facility ("DIP").

On October 12, 2023, IronNet filed a variety of "first day" motions seeking customary relief intended to enable the Company and its subsidiaries to continue ordinary course operations during the Restructuring. On October 13, 2013, the Court approved these first day motions, and authorized, on an interim basis, the execution of a reinstatement agreement with Amazon Web Services to reinstate and reactivate its cloud computing services.

Linda Zecher, CEO of IronNet, said, "Against a backdrop of intense restructuring in an uncertain capital raising environment, we remain intent on stabilizing IronNet and serving our customers. With the DIP financing provided by ITC, we believe we are better positioned to act in the interests of our stakeholders through the Restructuring."

About IronNet

Founded in 2014 by GEN (Ret.) Keith Alexander, IronNet, Inc. (OTCMKTS: IRNTQ) is a global cybersecurity leader that is transforming how organizations secure their networks by delivering the first-ever collective defense platform operating at scale. Employing a number of former NSA cybersecurity operators with offensive and defensive cyber experience, IronNet integrates deep tradecraft knowledge into its industry-leading products to solve the most challenging cyber problems facing the world today.

Cautionary Statements

The Company cautions that trading in the Company's securities during the pendency of the Restructuring is highly speculative and poses substantial risks. Trading prices for the Company's securities may bear little or no relationship to the actual recovery, if any, by holders of the Company's securities in the Restructuring.

Certain statements in this release are forward-looking statements which are subject to risks, uncertainties, and other factors potentially causing actual materially differing results from those expressed or implied by such statements, and are based upon estimates and assumptions that, while considered reasonable by the Company and its management, are inherently uncertain, including statements with respect to the Company's pursuit of bankruptcy protection. Forward-looking statements generally relate to future events and can be identified by terminology such as or similar to "may," "should," "could," "future," "expect," "intend," "intent," "will," "estimate," "believe," "predict," "potential," "anticipate" or "continue," or the negatives of these terms or variations of them or similar terminology.

Factors relating to the Company's Restructuring potentially causing actual results to differ materially from current expectations include, but are not limited to; the ability to obtain Court approval of motions filed, risks associated with any third-party motions, potential adverse effects of the Restructuring on the Company's liquidity or results of operations and increased legal and other professional costs necessary to execute the Company's reorganization, duration of the Restructuring, Court rulings in and the outcome of the Restructuring in general, and any effects of Restructuring on the Company and on the interests of various constituents.

Additionally, conditions to which the Company's cash collateral is subject and the risk that these conditions may not be satisfied for various reasons, including reasons outside of the Company's control; consequences of the acceleration of the Company's debt obligations and the trading price and volatility of the Company's common stock, and risks and uncertainties stated in the sections entitled "Risk Factors" and "Cautionary Note Regarding Forward-Looking Statements" of the Company's Annual Report on Form 10-K for the fiscal year ended January 31, 2023, and other documents filed by the Company from time to time with the SEC. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and the Company assumes no obligation and does not intend to update or revise these forward-looking statements other than as required by applicable law. The Company does not give any assurance that it will achieve its expectations.

Investor Contact: IR@ironnet.com
Media Contact: Media@ironnet.com

View original content:https://www.prnewswire.com/news-releases/ironnet-inc-files-voluntary-chapter-11-petitions-301977383.html

SOURCE IronNet, Inc.

FAQ

What is the current status of IronNet, Inc.?

IronNet, Inc. is undergoing a plan of reorganization under Chapter 11 bankruptcy.

Who is providing the debtor-in-possession financing facility to IronNet, Inc.?

ITC Global Advisors is providing a $10M debtor-in-possession financing facility to IronNet, Inc.

What motions did IronNet, Inc. file during the Restructuring?

IronNet, Inc. filed 'first day' motions seeking relief to continue its ordinary course operations during the Restructuring.

What has the Court authorized for IronNet, Inc.?

The Court has authorized the execution of a reinstatement agreement with Amazon Web Services to reactivate its cloud computing services.

What did Linda Zecher, CEO of IronNet, Inc., say about the situation?

Linda Zecher stated that they are focused on stabilizing IronNet and serving their customers, and believe that the DIP financing will help them act in the interests of their stakeholders.