Crossroads Systems, Inc., an intellectual property licensing company headquartered in Austin, Texas, yesterday announced that it filed a pre-packaged chapter 11 that has been accepted by more than two-thirds of the shareholders of the company, according to a press release. In connection with the filing, the company entered into restructuring support agreements with 210/CRDS Investment LLC (210) and with certain holders of the company's Series F preferred stock. Subject to the terms and conditions of the Plan and the restructuring support agreement (RSA) with 210 ("210 RSA"), Dallas-based 210 will invest $4 million cash in Crossroads Systems in exchange for shares of the reorganized company's common stock representing approximately 49.49 percent of the common stock of the reorganized company. In addition, 210 will provide up to $10 million of financing for the company to use (subject to the terms and conditions of the plan and the 210 RSA) to implement its strategy of monetizing its intellectual property assets and pursuing investments in companies that generate profit and positive cash flows, thus creating long-term shareholder value.
