Tix Corporation and Tix4Tonight, LLC voluntarily file
- Normal operations should continue without impacting customers
- The company seeks debtor-in-possession financing
- The company will sell almost all of its assets
LAS VEGAS, August 25, 2021 (GLOBE NEWSWIRE) – Tix Corporation (OTC: TIXC) and its wholly owned subsidiary Tix4Tonight, LLC (collectively, the “Company”), today announced that they have filed voluntary petitions under the Subchapter V of Chapter 11 of the Bankruptcy Code of the United States Bankruptcy Court for the District of Nevada.
In addition to its Chapter 11 business, the Company seeks and intends to obtain Debtor-In-Owner (DIP) financing from any lender that will serve to supplement the Company’s current cash position, enabling it to operate the business without interruption and continue to meet its financial obligations, including the timely payment of employee salaries and benefits, lease payments and other obligations, as well as the administration of its cases of chapter 11.
The Company also announced today that in conjunction with the filing, it is pursuing a sale process under Section 363 of the Bankruptcy Code. To this end, the Company intends to market and sell its assets to the highest bidder and / or the highest bidder through a court-supervised auction and approval process.
After careful consideration of a range of alternatives, the board of directors of Tix Corporation concluded that the Chapter 11 process represents the best long-term solution for the company to meet its liquidity challenges and strengthen its operations. . The Company appreciates the continued support of its customers and suppliers during this process, and appreciates the dedication and loyalty of its talented employees, whose support is and always will be essential to the success and future of the Company.
The board has appointed Dan Scouler, an experienced director of debtors in Chapter 11 matters, as an additional director to assist the company in the Chapter 11 process.
Rock Creek Advisors LLC is acting as financial and restructuring advisor to the Company and Griffin Hamersky LLP is legal counsel to the Company.
For access to court documents and other general information on Chapter 11 cases, please visit: http://www.bmcgroup.com/tix.
About Tix Corporation
Tix Corporation (OTCQX: TIXC) provides discount ticketing services. Due to COVID-19, the company suspended operations in March 2020, which included closing its seven discount ticket stores in Las Vegas under its Tix4Tonight marquee and online ticket sales site, www. tix4tonight.com, which offered discounted tickets to shows, concerts, attractions and tours, as well as discounted dining and shopping deals. The company recently reopened three of its stores and is currently operating on a daily basis.
With the exception of historical information contained in this document, certain matters addressed in this press release are forward-looking statements that involve risks and uncertainties. Forward-looking statements include, without limitation, statements about our future operations, income and financial condition. These forward-looking statements are based on expectations and assumptions as of the date of this press release and are subject to numerous risks and uncertainties that could cause actual results to differ materially from those described in forward-looking statements. Some of these risks and uncertainties are discussed in documents filed by the Company with over-the-counter markets. Forward-looking statements also include, for example, statements regarding voluntary cases initiated by the Company, the ability of the Company to confirm a Chapter 11 plan and its ability to continue to operate in the ordinary course while Chapter 11 cases. are in class. Risks and uncertainties regarding such forward-looking statements are further affected by Chapter 11 cases, including the Company’s ability to successfully confirm a Chapter 11 plan, including: completion of the plan; the potential negative effects of the Chapter 11 business on the Company’s liquidity and results of operations; the Company’s ability to obtain timely bankruptcy court approval with respect to petitions filed in Chapter 11 cases; objections to remedies requested by the Company in cases which could prolong Chapter 11 cases; employee attrition and the Company’s ability to retain senior management and other key personnel due to the distractions and uncertainties imposed in part by the Chapter 11 cases; the Company’s ability to comply with financing agreements; the Company’s ability to maintain relationships with its suppliers, customers, employees and other third parties as a result of Chapter 11 cases; the effects of Chapter 11 affairs on the Company and on the interests of various constituents, including holders of common shares and other equity securities of the Company; bankruptcy court rulings in Chapter 11 cases and the outcome of Chapter 11 cases generally; the length of time the Company will operate under Chapter 11 protection and the continued availability of working capital for the duration of Chapter 11 cases; risks associated with third party claims in Chapter 11 matters, which may interfere with the Company’s ability to uphold a Chapter 11 plan or alternative restructuring; increased administrative and legal costs associated with the Chapter 11 process; potential delays in the Chapter 11 process due to the effects of the COVID-19 virus; and other disputes and risks inherent in a bankruptcy process. The Company has no obligation to update or revise these forward-looking statements and does not undertake to do so.
The Company cautions that trading in the securities of the Company during the life of Chapter 11 business is highly speculative and poses substantial risks. The trading prices of the securities of the Company may have little or no relation to the actual collection, if any, by the holders of securities of the Company in the cases of Chapter 11. The holders of ordinary shares of the Company and other equity securities may suffer a total loss on their investment, depending on the outcome of Chapter 11 matters.
Heidi Lipton (Rock Creek Advisors LLC) at [email protected]
Tim Peach (Rock Creek Advisors LLC) at [email protected]