Wag! pursues pre-packaged Chapter 11
Pet services company Wag is pursuing a comprehensive balance sheet restructuring through a voluntary, pre-packaged Chapter 11 process in the U.S. Bankruptcy Court for the District of Delaware.
A pre-packaged bankruptcy is when a company negotiates its restructuring plan with creditors before filing for Chapter 11, allowing it to exit bankruptcy much faster.
The company’s primary secured lender, Retriever LLC, which constitutes the only voting class under the plan, has already voted to accept the pre-packaged plan of reorganization. The plan provides “a clear and expeditious path” to reduce debt, transition ownership of the company to Retriever, and position the business for long-term success under private ownership.
Under the terms of the plan, Retriever will assume ownership of the reorganized company following court approval of the plan. Wag! is expecting to emerge from Chapter 11 within approximately 40 days.
To support operations during the process, the company has secured a commitment for debtor-in-possession financing from its existing secured lender, Retriever. This financing, combined with cash generated from ongoing operations, is expected to provide liquidity to meet business obligations throughout the court-supervised process. In addition, as part of the company’s reorganization plan, Retriever has also committed to provide exit financing, further reinforcing the company’s path to a stable and well-capitalized emergence. The company believes it will emerge with a strengthened financial foundation and the resources needed to execute on its long-term strategic priorities.
Founded in 2015, Wag is mainly known for its dog walking app that allows pet owners to book dog walkers. It also operates a pet insurance marketplace and its largest creditor with an unsecured claim is pet insurance provider Pets Best. The company went public by merging with blank-check firm CHW Acquisition Corp in a deal valued at $350 million.
“This process enables us to move forward with a clear plan and a strong partner who shares our vision for the future. Retriever’s ongoing support—along with their long-term investment in our business—will provide the financial and operational flexibility we need to continue serving our customers while positioning our business for sustainable growth and long-term success. With a well-capitalized balance sheet post-emergence and additional capital to support future growth, we believe the Company will be well-positioned to thrive over the long-term.” – Garrett Smallwood, CEO and Chairman of Wag!.
