Clover Technologies is facing big changes
Clover Technologies Group will sell its used printer cartridge remanufacturing business before filing for bankruptcy to restructure its debt.
Headquartered in Illinois, the company struggles with hundreds of millions of dollars in debt and the recent loss of significant customers. The company includes Clover Imaging, the world’s largest seller of remanufactured laser and inkjet cartridges, and Clover Wireless, which provides repair, remanufacturing and parts removal services for mobile devices.
Below are three major announcements related to the company:
Clover Imaging Sales: Clover technology group signed a contract sell the printer and cartridge business to Clover Imaging’s own management team and an investment firm called Norwest Equity Partners. “With our new, very low debt structure, we have a lot of flexibility for the future and are well positioned to write the next chapter for the Clover Imaging Group,” said Jim Cerkleski, chairman of the Clover Imaging Group, in a press release. “We are very excited about the growth opportunities this new capital and partnership offers.” Financial terms of the transaction were not disclosed.
Debt agreement reached: On December 11, Clover Technologies Group announced that it had entered into a debt restructuring assistance agreement that includes approximately $ 644 million in long-term debt. The restructuring is implemented through an insolvency plan according to Chapter 11 of the reorganization, which according to a. should be submitted shortly Press release. Clover Imaging, which is expected to close this month, will not be part of the filing or financial restructuring. Clover Imaging even released its own statement, stressing that it will be a separate and independent company after the sale and will not be affected by the Chapter 11 filing. “There will be no shared finances, facilities, operations or employees with 4L Holdings Group or Clover Wireless.” according to the statement. The sale of Clover Imaging will raise funds to help 4L pay off some of its long-term debt, the announcement said.
Clover wireless detection: The mobile communications business was acquired by the Dutch company Teleplan International. Teleplan offers end-to-end services for the electronics supply chain, including testing and grading, kitting, repair and refurbishment, reverse logistics and value recovery, in accordance with a Press release. “This exciting, very complementary combination will significantly expand the breadth of our product and solution platform and our global presence, which will enable us to accelerate and optimize the value of assets for our customers and an even stronger partner for OEMs and service providers to become, ”said Dan Perez, CEO of Clover Wireless, in the press release.
Citing the Wall Street Journal and other news outlets, E-Scrap News reported in August that 4L Holdings, which operates as Clover Technologies Group, had over $ 600 million in leveraged loan debt and had lost some significant customers, including AT&T, which chose to buy refurbished phones direct from OEMs instead of Clover Wireless. This summer, 4L Holdings hired debt restructuring advisors.