Knotel Files For Chapter 11 Protection; To Sell Its Business To Newmark

(RTTNews) - Knotel said that, to accomplish sale of its business and a reorganization of the company's U.S. footprint in the most efficient manner, the company and its U.S. subsidiaries have filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware. The filing does not include Knotel's international operations.

As part of its strategic path forward, Knotel has reached an agreement to sell the business to an affiliate of Newmark Group Inc. (NMRK). The company has also made the decision to exit multiple locations in the U.S. as part of the process.

Knotel has obtained a commitment for debtor-in-possession financing from an affiliate of Newmark of about $20 million in cash. Knotel believes the DIP financing will provide sufficient liquidity to support Knotel's day-to-day operations during the process, including timely payment of employee wages and continuation of benefits, as well as working with customers and vendors.