LivingSocial Receives Emergency $110M Debt Infusion From Existing Investors With Oppressive Terms
www.privco.com/livingsocial-receives-emergency-110m-cash-infusion-from-existing-investors-to-avoid-bankruptcy
From the page
Saved with the link. Notes from 2007 to 2016 are mostly the page's own words, so this is probably an excerpt.
LIVINGSOCIAL Receives Emergency $110M Debt Infusion From Existing Investors With Oppressive Terms, JUST DAYS FROM BANKRUPTCY, Effectively Handing Over Distressed Co. to Today's Financing Participants...Implied Valuation: JUST $330M, DOWN 94% FROM $5.7 BILLION In Dec. 2011 V.C. Round...Equity Was NOT Issued Today (As Has Been Widely Misreported)...Instead, A Desperate LIVINGSOCIAL Accepted A COMPLEX Series of Secured-Convertible-Debt Securities With Onerous Terms (PrivCo Has Confirmed Exclusively) Including: (1) Liquidation Preferences of SEVERAL TIMES the $110M In Debt (2) Double-Digit Cash Dividends (3) "Super-Warrants" On Stock, (4) Secured Against Co. Assets and Stock, and (5) Re-Pricing of Participating Investors Earlier Rounds...Employees' and Founders' Common Stock Now Worthless