Packable Holdings files Chapter 11 bankruptcy to facilitate wind-down

By Sarah Lizee

Olympia, Wash., Aug. 29 – Packable Holdings, LLC and several of its affiliates have initiated a court approved wind-down under Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware, according to court documents.

Packable has $271.8 million in total funded debt, consisting of $53.1 million outstanding under a prepetition asset-based facility, $95.4 million under a prepetition term loan facility, $110 million outstanding under 2021 convertible notes and $600,000 under prepetition paycheck protection loans.

In September 2021, the company announced plans to combine with Highland Transcend Partners I Corp. However, the merger agreement was terminated by the companies in March, leaving Packable without enough liquidity to fund operations.

Between then and the petition date, Packable worked to obtain multiple rounds of financing.

The company received a non-binding term sheet for $200 million in permanent refinancing from a potential third-party lender group, but the company was unable to close the transaction.

Ultimately, the company failed to secure a long-term solution to its liquidity needs and was forced to start a wind-down of its operations.

The company plans to sell its assets and ensure that the wind-down maximizes value.

Packable is seeking court approval to access the cash collateral of its prepetition secured lenders.

In its petition, the company listed $100 million to $500 million in assets. Its primary assets consist of inventory with a total gross book value of about $79 million and intellectual property. In addition, Packable holds minority investments in over 20 brands, holds a majority interest in two additional brands, and is a majority equity holder in two joint ventures.

Its largest unsecured creditors are MTVL, LLC, based in Hong Kong, with a $30 million convertible notes claim, Luxor Capital Group LP, based in New York, with a $17.98 million convertible notes claim, Heights Capital Management, based in San Francisco, with a $14.99 million convertible notes claim, MGG Investment Group LP, based in New York, with a $14.99 million claim, the Poses Family Foundation, based in Miami Beach, Fla., with a $7.5 million convertible notes claim, and Lo Global Private Assets Fund, based in Luxembourg, with a $5 million convertible notes claim.

Packable is a Hauppauge, N.Y.-based e-commerce company that operates as a third-party seller of health, beauty and other consumer projects on online marketplaces. The Chapter 11 case number is 22-10797.

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