Video management software company KIT digital has announced a drastic restructuring that includes filing for Chapter 11 bankruptcy and reorganizing to a new entity called Piksel.
The company said that it expects the bankruptcy filing, which will be sponsored by three of its largest shareholders to take place by April 24.
The plan includes regrouping several profitable subsidiaries, including Ioko 365, Polymedia, Kewego, Multicast and Megahertz, into a new group entity called Piksel.
KIT digital’s interim CEO Peter Heiland said in a statement:
By moving the core businesses forward together unburdened by the issues currently plaguing the corporate parent, our customers and products can once again become the sole focus of this exciting business.
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KIT digital was delisted from the NASDAQ stock market last December just months after it moved its headquarters from Prague to New York City. The company laid off 300 employees last September as part of a restructuring initiative.
After being highly active with acquisitions in recent years, KIT digital began selling companies off last year after running into trouble. According to The Wall Street Journal, KIT digital shed 17 of its recent acquisitions in the past several months.
Image credit: Jupiterimages
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