Item 1.03. Bankruptcy or Receivership.
Chapter 11 Cases
As previously reported, iLearningEngines, Inc. (the "Company") and its affiliated entities iLearningEngines Holdings, Inc., iLearningEngines FZ-LLC and in2vate, LLC (collectively, the "Debtors"), have filed voluntary petitions (the "Chapter 11 Cases") for relief under chapter 11 of title 11 of the United States Code, 11 U.S.C. ยงยง 101-1532 (the "Bankruptcy Code") in the United States Bankruptcy Court for the District of Delaware (the "Bankruptcy Court"). The Debtors continue to operate the business as "debtors-in-possession" under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code. The Chapter 11 Cases are being administered under the caption In re iLearningEngines, Inc., Case No. 24-12826.
On January 13, 2025, the Bankruptcy Court held a hearing on the Chapter 11 Cases at which the Bankruptcy Court ruled on various additional motions (the "Additional Motions") designed to ensure the Debtors' ability to continue operating in the ordinary course of business and minimize the effect of the Chapter 11 Cases on the Debtors' customers, vendors, tenants and employees.
Orders granting all of the requested relief in the Additional Motions were entered between January 13 and January 15, 2025. Included among the orders were:
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1.
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an order to allow the Debtors to use cash collateral until January 25, 2025, subject to further extension upon (i) the agreement of the Debtors and the pre-petition secured parties under the Company's pre-petition Loan and Security Agreement by and among Holdings, as borrower, the lenders party thereto, and East West Bank as administrative agent and (ii) the entry of an additional interim order by the Bankruptcy Court approving the extension [Dkt. 64];
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2.
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an order to authorize the Debtors to pay pre-petition employee obligations and to continue employee benefit programs [Dkt. 61];
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3.
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an order to authorize the Debtors to continue to use their existing bank accounts and cash management system [Dkt. 66]
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4.
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an order to authorize the Debtors to retain Stretto, Inc. as claims and noticing agent [Dkt. 60];
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5.
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an order to allow the Debtors to maintain their existing insurance coverage [Dkt. 59];
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6.
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a supplemental order to authorize the joint administration of the Chapter 11 Cases [Dkt. 58]; and
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7.
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an order to modify the requirements to file a list of equity security holders of the Company [Dkt. 65].
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