To Our Valued Customers – Update, June 16, 2010
As originally announced on January 11, 2010, QL2 Software, Inc. has been working through the process of voluntarily restructuring its debt obligations under the protection of Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court in Seattle, WA. Since that announcement, the company has continued normal operations without interruption.
On Friday April 9, 2010, QL2 Software signed a definitive Purchase and Sale Agreement with DMEP Corporation d/b/a Hale Global to serve as a "stalking horse" bidder in sale "Auction" process pursuant to section 363(f) of the Bankruptcy code. Bidding procedures were approved and an "Auction" date was set for June 2, 2010 with a confirmation hearing scheduled for June 7, 2010.
Since April '10 the financial health of the company has greatly improved relieving the immediate term financial pressure it faced. Bearing in mind the Company's improved operating performance, QL2's Board of Directors felt it was prudent to revisit the decision to conduct an Auction under section 363 of the Bankruptcy Code. After considering the risks and benefits to QL2's creditors and stakeholders, the QL2 Board of Directors decided to pursue a Joint Plan of Reorganization under the continued sponsorship of Hale Global. The Plan anticipates payment in full of all allowed claims, a DIP Credit Facility made available to the Company through Plan confirmation, an Exit Facility to support capital growth requirements of QL2 after existing bankruptcy, and that QL2 would remain a viable Seattle-based entity.
The Joint Plan of Reorganization was filed with the Bankruptcy court on May 25, 2010. A hearing is scheduled for approval of the Plan Disclosure Schedules on June 25, 2010. The Company anticipates exiting Chapter 11 in late Q3 2010.
We would like to thank everyone for their continued support during this challenging period. With the support of our new sponsor, we feel very confident about our future and our ability to continue providing data services to support your business needs now and for years to come. Please contact your sales representative or one of us if you have any further questions.
Thanks again,
Paul Campbell,
VP and General Manager of Sales
+1 206.859.4209
paul@QL2.com
Mark Ghazal,
VP of Business Development
+1 206.859.4245
mark@QL2.com
