Dynata Enters Chapter 11 Deal in US Bankruptcy Court

In the US, Dynata has commenced a prepackaged Chapter 11 filing, supported by investors who will now own 100% of its equity in exchange for writing down more than half a billion dollars in debt. The process, which does not affect its businesses outside the US, should provide stability for a 36-month 'transformation plan'.

A filing under Chapter 11 of the Bankruptcy Code allows protection to companies while they deal with debt problems in a structured manner, generally with the support of creditors, investors and/or other partners and with a proposed recovery plan.

Dynata's filing recapitalizes the company and reduces its total debt from c.$1.3 billion to $780 million, as well as giving it $81.5 million in post-petition and exit financing from its new equity owners, who are its first and second lien holders. Dynata says the agreement gives it financial strength to prioritize growth and further execute on phase 2 of a 36-month transformation plan, and confirms that the business will continue 'without interruption in the U.S. and globally', with continued 'timely payments to all employees and vendors'. The Chapter 11 plan is expected to be in place by early July, and should allow it to 'emerge swiftly from bankruptcy'.

Dynata was the name given in 2019 to the result of a merger 15 months earlier between Research Now and SSI, creating the industry's largest provider of online panel data and technology-based research solutions based on opted-in, first-party data. The company currently serves more than 6,000 market research, media and advertising agencies, publishers, consulting and investment firms and corporate customers in North America, South America, Europe and Asia-Pacific.

CEO Mike Petrullo says of the Chapter 11 announcement: 'I appreciate the continued cooperation with our lenders as it reaffirms their belief in the underlying strength of our business. This milestone unlocks value in our company and supports our short and long-term growth strategy, which also includes recent additions of key members to our sales and leadership teams... By executing our optimization and investment plans this year we are building the catalyst for growth in 2025 and beyond. I am thankful to the Dynata team who [have] committed themselves to building a best-in-class brand and to our loyal clients'.

Web site: www.dynata.com .