The network equipment maker filed a fast track restructuring plan in early November and received court approval last month. The company said it remained in operation throughout the period, and due to the stock split is now compliant with Nasdaq stock listing requirements.
As part of the deal, Redback gets $30 million from Technology Crossover Ventures, a venture capital firm. TCV receives 651,749 shares of series B stock, convertible to common stock with a 1-for-10 ratio, as well as warrants for a further 1.6 million shares of common stock, with an exercise price of $5.
The restructuring also eliminated $467million of debt from its balance sheet by converting it to equity. Redback said it also removed $44 million in annual expenses from its business model.
This article is based on material originally produced by ComputerWire.
