REE Automotive said an Israeli court has approved its creditors’ arrangement, clearing the way for a debt restructuring backed by a $4 million investment commitment as the electric-vehicle technology company plans to continue operating as a private company.
The Tel Aviv-Jaffa District Court approved the arrangement on October 28, after creditors met and voted on October 25, the company said in a filing signed Friday. The arrangement, under Israel’s Insolvency and Economic Rehabilitation Law, is intended to keep the company operating on a going-concern basis as a private company.
The plan is backed by an equity commitment letter signed October 19 with two investors, Kukac LLC and Elljay Limited, who agreed to invest a combined $4 million, $2 million each, to provide working capital. The commitment is conditional and has not been funded or closed.
Under the October 19 terms, the company’s existing shares, options and warrants would be cancelled at closing. That is the plan, not a completed step: no delisting or cancellation has been carried out, and the agreements include a long-stop date of November 15.
JBizNews Desk | Tel Aviv, Israel
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