Tix Corporation and Tix4Tonight, LLC Voluntarily File for Chapter 11 Bankruptcy Protection

Rhea-AI Summary

Tix Corporation (OTC: TIXC) filed voluntary Chapter 11 bankruptcy petitions in Nevada, seeking Debtor-in-Possession financing to maintain operations without customer impact. The company plans to sell substantially all its assets through a court-supervised auction.

The Board believes this process is the best solution for liquidity challenges. It acknowledges employee support and aims to continue paying wages and benefits. The company is currently operational, having reopened three stores since the COVID-19 shutdown in March 2020.

Positive

• Company seeks Debtor-in-Possession financing to maintain operations and meet obligations.
• Normal operations are expected to continue for customers.

Negative

• Company filed for Chapter 11 bankruptcy, indicating severe financial distress.
• Current trading of the company's securities is highly speculative with risks of total loss for shareholders.

• Normal Operations Expected to Continue with No Impact on Customers
  
  
• Company is Seeking Debtor-In-Possession Financing
  
  
• Company Will Pursue a Sale of Substantially All of Its Assets

LAS VEGAS, Aug. 25, 2021 (GLOBE NEWSWIRE) -- Tix Corporation (OTC: TIXC) and its wholly-owned subsidiary Tix4Tonight, LLC (collectively, the “Company”), announced today that it has filed voluntary petitions under Subchapter V of Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the District of Nevada.

In conjunction with its Chapter 11 cases, the Company seeks and intends to obtain Debtor-in-Possession (DIP) financing from any lenders that will serve to supplement the Company’s current cash position, enabling it to operate the business uninterrupted and continue to meet its financial obligations, including the timely payment of employee wages and benefits, lease payments, and other obligations, as well as administering its Chapter 11 cases.

The Company also announced today that in conjunction with the filing, it is pursuing a sale process under Section 363 of the Bankruptcy Code. To this end, the Company intends to market and sell its assets to the highest and/or best bidder through a Court-supervised auction and approval process.

After careful consideration of a range of alternatives, Tix Corporation’s Board of Directors concluded that the Chapter 11 process represents the best long-term solution for the Company to address its liquidity challenges and strengthen its operations. The Company appreciates the continued support of its customers and vendors during this process, and appreciates the dedication and loyalty of its talented employees, whose support is, and always will be, critical to the Company’s success and to the future of the Company.

The Board appointed Dan Scouler, an experienced director of Debtors in Chapter 11 cases as an additional director to assist the Company in the Chapter 11 process. 

Rock Creek Advisors LLC is acting as financial advisory and restructuring advisors to the Company and Griffin Hamersky LLP is the Company's legal counsel.

For access to Court documents and other general information about the Chapter 11 cases, please visit: http://www.bmcgroup.com/tix.

About Tix Corporation

Tix Corporation (OTCQX: TIXC) provides discount ticketing services. Due to COVID-19, the Company suspended its operations in March 2020, which included the closure of its seven discount ticket stores in Las Vegas under its Tix4Tonight marquee and its online ticket sales site, www.tix4tonight.com, which offered discount tickets for shows, concerts, attractions, and tours, as well as discount dining and shopping offers. The Company recently reopened three of its stores and is currently operating daily.

Forward–Looking Statements

Except for the historical information contained herein, certain matters discussed in this press release are forward-looking statements which involve risks and uncertainties. Forward-looking statements include, but are not limited to, statements about our future operations, revenues and financial position. These forward-looking statements are based on expectations and assumptions as of the date of this press release and are subject to numerous risks and uncertainties which could cause actual results to differ materially from those described in the forward-looking statements. Certain such risks and uncertainties are discussed in the Company's filings with the OTC Markets. Forward-looking statements also include, for example, statements regarding the voluntary cases commenced by the Company, the Company’s ability to confirm a Chapter 11 plan and its ability to continue operating in the ordinary course while the Chapter 11 cases are pending. The risks and uncertainties regarding such forward-looking statements are further impacted by the Chapter 11 cases, including the Company’s ability to successfully confirm a Chapter 11 plan, including: consummation of the plan; potential adverse effects of the Chapter 11 cases on the Company’s liquidity and results of operations; the Company’s ability to obtain timely approval by the Bankruptcy Court with respect to the motions filed in the Chapter 11 cases; objections to relief sought by the Company in the cases that could protract the Chapter 11 cases; employee attrition and the Company’s ability to retain senior management and other key personnel due to the distractions and uncertainties imposed in part by the Chapter 11 cases; the Company’s ability to comply with financing arrangements; the Company’s ability to maintain relationships with its suppliers, customers, employees, and other third parties as a result of the Chapter 11 cases; the effects of the Chapter 11 cases on the Company and on the interests of various constituents, including holders of the Company’s common stock and other equity securities; the Bankruptcy Court’s rulings in the Chapter 11 cases and the outcome of the Chapter 11 cases generally; the length of time that the Company will operate under Chapter 11 protection and the continued availability of operating capital during the pendency of the Chapter 11 cases; risks associated with third party motions in the Chapter 11 cases, which may interfere with the Company’s ability to confirm a Chapter 11 plan or an alternative restructuring; increased administrative and legal costs related to the Chapter 11 process; potential delays in the Chapter 11 process due to the effects of the COVID-19 virus; and other litigation and inherent risks involved in a bankruptcy process. The Company has no obligation to update or revise these forward-looking statements and does not undertake to do so.

The Company cautions that trading in the Company’s securities during the pendency of the Chapter 11 cases 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 Chapter 11 cases. Holders of shares of the Company’s common stock and other equity securities could experience a complete loss on their investment, depending on the outcome of the Chapter 11 cases.

Investor Contact:

Heidi Lipton (Rock Creek Advisors LLC)   at hlipton@rockcreekfa.com

Tim Peach (Rock Creek Advisors LLC) at tpeach@rockcreekfa.com

FAQ

What led Tix Corporation to file for Chapter 11 bankruptcy on August 25, 2021?

Tix Corporation filed for Chapter 11 due to liquidity challenges, seeking to reorganize and sell its assets.

How will Tix Corporation operate during its bankruptcy proceeding?

The company plans to secure Debtor-in-Possession financing to continue operations without impacting customers.

What is the status of Tix Corporation's operations following the bankruptcy filing?

Tix Corporation has reopened three of its stores and is operating daily.

What does the Chapter 11 filing mean for Tix Corporation shareholders?

Shareholders face substantial risks as trading in Tix securities is speculative, with potential for total investment loss.