I have had several discussions with Sam Sinai, the CEO of Deco as well as a few other sources. Deco has been reorganizing for over a year and has recently been soliciting offers. EdisonReport has learned that Deco received three term sheets in the past two weeks. EdisonReport has further learned that Sam Sinai’s brother, Babak Sinai, will invest $450,000 in the company. In addition, there is a major lighting company, who remains anonymous, who will also invest. This unknown company is providing a combination of working capital via a cash investment in addition to access to their inventory. The company has agreed to allow Deco, through Deco’s rep network, to sell their products under the Deco label. An investor entering the picture at this point helps Deco in several ways, as it allows DECO to generate revenue without first having to invest in materials and inventory.
The deal has to be approved by the bankruptcy court as all Chapter 11 reorganizations have to be approved. However, approval of the bankruptcy court is not a prerequisite for the investment to move forward, as the investor has already paid for some of Deco’s inventory and the court still has yet to hear and review the current filing.
Below is a portion of what Deco plans to submit to the court at its next hearing on 10 MAR 2021:
Signify has a claim of $342,168 against Deco and until recently has been a major stumbling block to the reorganization. We have been told that Signify is more flexible toward this plan.
Developing….