SONIC FOUNDRY INC: going-concern / distress — Sonic Foundry enters receivership; court-appointed receiver to liquidate assets; shareholders likely to receive nothing.

SONIC FOUNDRY INC

Court appointed Seth E. Dizard as receiver on March 26, 2024 under Wis. Stats. Ch. 128 for all assets of Sonic Foundry.
Shareholders will not receive distributions from receivership; trading in common stock is highly speculative with potential total loss.
Mark Burish provided a $50,000 initial advance and holds super-priority security interest over all assets; loan matures May 10, 2024.
Receiver authorized to use cash collateral per approved budget; additional borrowing at lender's sole discretion.

item 1.01 item 2.03 item 1.03 item 7.01 item 9.01

Key facts

Extracted from this filing and checked against the source text.

Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.9

SONIC FOUNDRY INC incurred loan of $50,000 with Mark Burish maturing May 10, 2024.

Instrument: loan
Principal: $50,000
Counterparty: Mark Burish
Maturity: May 10, 2024
Event: incurrence

Exact text from the filing

On March 26, 2024 the Court issued an order approving post-petition financing between Mark Burish as lender (“Lender”) and Seth E. Dizard in his capacity as Receiver for Sonic Foundry (the “Loan”). the Loan is in the form of a Financing Agreement with the Lender (the “Financing Agreement”), which provides for an initial advance of $50,000 upon entry of the order approving the Loan and for further advances in the sole discretion of the Lender and subject to documentation and at such interest rates as Lender shall in his sole discretion requires.

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Distress & Bankruptcy SEC 8-K Item 1.03 confidence 0.9

SONIC FOUNDRY INC entered receivership in Dane County Circuit Court in Wisconsin (petition 2024-03-26).

Proceeding: receivership
Court: Dane County Circuit Court in Wisconsin
Petition: 2024-03-26

Exact text from the filing

On March 26, 2024 the Court issued an order approving Seth E. Dizard as the Receiver.

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Source: SEC EDGAR

accession 0001437749-24-009789

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