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Tuesday, October 1, 2019

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Social media site winds down business, returns $13m to investors


  • Challenge: The founders and board were unhappy with the direction the company was taking.
  • Solution: Wind down the business.
  • Result: The firm completed an orderly wind-down, resolved all creditor claims and returned $13M to investors.

A high-profile social media site raised significant institutional capital. Unfortunately, the founders and board were dissatisfied with the direction of the company’s evolution and elected to shut down the site, wind down the company, resolve all creditor claims and return unused capital to investors.

Having received shareholder approval to do so, the company retained Armanino to take on officer and director roles and manage the orderly wind-down of the company.

In accordance with Delaware statute, Armanino executed the wind-down, communicated with all creditors, settled all open and approved claims, filed all the required dissolution paperwork and final taxes, and ultimately distributed $13 million to the investors.


Contact an Armanino Expert:

Michael Hogan - Managing Director, Consulting

Alex van Dillen - Director, Consulting


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