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Case Status:    ONGOING    
On or around 06/04/2019 (Ongoing date of last review)

Filing Date: June 03, 2019

According to the Complaint, Babcock is a global leader in energy and environmental technologies and services
for the power and industrial markets.

This action stems from a proposed transaction announced on April 5, 2019, pursuant to which the Board of Directors of Babcock & Wilcox Enterprises, Inc. caused the Company to amend its credit agreement with its current lenders, whereby B. Riley FBR, Inc., which owns 6.5% of the Company’s outstanding shares, has joined the facility and has arranged an additional $150 million in secured financing through a last out term loan, and has agreed to provide an uncommitted incremental credit facility of up to another $15 million. In connection with the amendment, the Company agreed to seek shareholder approval to increase the number of its authorized shares, execute within six months a $50 million rights offering at $0.30 per share (the proceeds of which will be used for repayment of a portion of the new debt) and, immediately thereafter, exchange $35.1 million of the last out term loan held by Vintage Capital Management LLC, which owns 17.8% of the Company’s outstanding shares, for common stock at $0.30 per share, issue approximately 16.7 million warrants, each to purchase one share of common stock for $0.01 per share, and execute a 1:10 reverse stock split.

On May 13, 2019, Defendants filed a proxy statement with the United States Securities and Exchange Commission, which seeks stockholder approval of the Proposed Transaction and scheduled a stockholder vote for June 14, 2019. The Complaint alleges that the Proxy Statement omits material information with respect to the Proposed Transaction, which renders the Proxy Statement false and misleading.

COMPANY INFORMATION:

Sector: Capital Goods
Industry: Misc. Capital Goods
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: BW
Company Market: New York SE
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: D. Delaware
DOCKET #: 19-CV-01032
JUDGE: Hon. Maryellen Noreika
DATE FILED: 06/03/2019
CLASS PERIOD START: 04/05/2019
CLASS PERIOD END: 06/03/2019
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Rigrodsky & Long, P.A.
    919 N. Market Street, Suite 980, Rigrodsky & Long, P.A., DE 19803
    302.295.5310 302.295.5310 · info@rigrodskylong.com
  2. RM Law, P.C.
    1055 Westlakes Drive, Suite 3112, RM Law, P.C., PA 19312
    (484) 324-6800 ·
No Document Title Filing Date
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