The financing agreement approved by the bankruptcy court is with PVI Virtual Media Services, LLC, a newly formed entity owned by PVI's two secured creditors and largest stockholders, that will provide PVI with interim financing to fund its post-petition operating expenses.
PVI expects this debtor-in-possession financing to allow the delivery of services to PVI's customers and clients to continue without interruption during the bankruptcy process.
The bankruptcy court has also approved a competitive bidding and sale process for the sale of PVI's assets.
PVI has entered into an agreement with PVI Virtual Media Services, LLC to sell substantially all of its assets to PVI Virtual Media Services, LLC. PVI expects that, upon consummation of the asset sale, PVI will be liquidated pursuant to a plan of liquidation which would be subject to the approval of the bankruptcy court.
In the event of a liquidation, any recovery for shareholders of PVI would be highly unlikely and would depend on the outcome of the competitive bidding procedure.
Virtual imaging experts Princeton Video Image have received bankruptcy court approval for Chapter 11 debtor-in-possession financing and sale procedures.
