MAD CATZ INTERACTIVE, INC. (OTCMKTS:MCZAF) Files An 8-K Bankruptcy or Receivership
Item 1.03
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Bankruptcy or Receivership |
On March 30, 2017, after considering all strategic alternatives,
Mad Catz Interactive, Inc. (the Company), and its Canadian
subsidiary, 1328158 Ontario Inc., ceased operations and made
voluntary assignments in bankruptcy to the provisions of the
Bankruptcy and Insolvency Act (Canada). to the assignments in
bankruptcy, PricewaterhouseCoopers Inc. (PWC) has been appointed
as the trustee in bankruptcy of the Companys estate. The Companys
wholly-owned US subsidiary, Mad Catz, Inc., also has ceased
operations and concurrently filed a voluntary petition for relief
under the provisions of Chapter 7 of Title 11 of the United
States Code, 11 U.S.C. 101 et seq. in the United States
Bankruptcy Court for the District of Delaware (the Bankruptcy
Court) to initiate an orderly liquidation of assets. A Chapter 7
trustee will be appointed by the Bankruptcy Court and will assume
control of the US subsidiary. In addition, certain of the
Companys other foreign subsidiaries have filed, or intend to file
in the immediate future, for liquidation under comparable
legislation in their countries of origin. The assets of the
Company will be liquidated and claims paid in accordance with
applicable laws.
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Item 2.04 |
Triggering Events That Accelerate or Increase a Direct |
The voluntary assignments in bankruptcy to the provisions of the
Bankruptcy and Insolvency Act (Canada) by the Company and 1328158
Ontario Inc., the filing of the Chapter 7 case by Mad Catz, Inc.,
and the respective filings for liquidation by the Companys other
foreign subsidiaries described in Item 1.03 above, constitute an
event of default under that certain Loan and Security Agreement
dated as of June 30, 2015 among the Company, Mad Catz, Inc.,
1328158 Ontario Inc. and New Star Business Credit, LLC, as
amended, (the Loan Agreement) as well as that certain Master
Facilities Agreement, dated as of June 30, 2015 among FGI
Worldwide LLC and Mad Catz Europe Limited (the Master Facilities
Agreement). An event of default under the Loan Agreement and the
Master Facilities Agreement entitles the respective Lenders
thereto to pursue certain remedies, as described in the Loan
Agreement and Master Facilities Agreement.
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Item 5.02 |
Departure of Directors or Certain Officers; Election of |
In connection with the Companys voluntary assignment in
bankruptcy, PWC will assume control over the assets and
liabilities of the Company, effectively eliminating the authority
and powers of the Board of Directors of the Company and its
executive officers to act on behalf of the Company. Accordingly,
on March 30, 2017, John Nyholt, Scott Guthrie, Carlo Chiarello,
and Karen McGinnis resigned from their positions as directors of
the Company.The resignations are not the result of any
disagreement with the Company regarding the Companys operations,
policies, or practices, but are because of the voluntary
assignment in bankruptcy. The executive officers of the Company
ceased to be officers and employees of the Company, effective
March 30, 2017.
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Item 9.01. |
Financial Statements and Exhibits |
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(d) |
Exhibits. |
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99.1 |
Press Release, dated March 31, 2017. |
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MAD CATZ INTERACTIVE, INC. (OTCMKTS:MCZAF) Recent Trading Information
MAD CATZ INTERACTIVE, INC. (OTCMKTS:MCZAF) closed its last trading session at with 267,934 shares trading hands.