Appgate, Inc., a Miami-based cybersecurity software company focused on zero trust network access (ZTNA) and digital threat protection, filed a prepackaged Chapter 11 bankruptcy on May 6, 2024 in Delaware (Case No. 24-10956) before Judge Craig T. Goldblatt. The company had filed with approximately $170.2 million in funded debt across three secured tranches (1L convertible notes $103.2M, 2L convertible notes $8.9M, 3L revolving credit facility $58.1M), all maturing in 2026. Liquidity constraints, covenant pressure, execution challenges, and unfavorable macro conditions (inflation and rising rates) prompted the filing. The prepackaged plan was supported by 100% of all funded debt holders and approximately 89% of equity interests via a restructuring support agreement (RSA) executed May 3, 2024. The company obtained $18 million in DIP financing from 1L convertible noteholders at 8% PIK. The plan was confirmed on June 18, 2024 and became effective on July 2, 2024, implementing a debt-to-equity recapitalization whereby 1L and 2L convertible noteholders received new equity, the 3L revolver was cancelled with no recovery, general unsecured creditors were left unimpaired, and existing common equity was cancelled with no distribution. Appgate emerged as a private company with no corporate debt.
