DZS INC.: going-concern / distress — DZS files Chapter 7 bankruptcy, ceases operations; stock likely worthless

The commencement of the chapter 7 cases described in Item 1.03 of this Current Report on Form 8-K may trigger events of default under certain of the Company’s and the Subsidiaries’ contracts, agreements or debt instruments, which may result in termination of, or an acceleration of the Company’s and the Subsidiaries’ obligations under, such contracts, agreements or instruments.

On March 14, 2025, after considering its financial and operational condition as well as all possible strategic alternatives, including, without limitation, (i) obtaining additional financing from existing and/or third party lenders, (ii) implementing an out-of-court restructuring and other cost reduction measures, (iii) pursuing a going concern sale, or sale of assets or business lines, to one or more third parties, and (iv) obtaining debtor in possession financing from existing and or third party lenders to facilitate a reorganization proceeding under chapter 11 of Title 11 of the United States Code (the “Bankruptcy Code”), DZS Inc. (the “Company”) and certain of its wholly-owned direct subsidiaries, DZS Services Inc. (“DZS Services”) and DZS California Inc. (“DZS California” and, together with DZS Services, the “Subsidiaries”), each filed a voluntary petition for relief under the provisions of chapter 7 of the Bankruptcy Code in the United States Bankruptcy Court for the Eastern Dist