Hyperscale Data Subsidiary Gresham Worldwide Receives Court Approval of Reorganization Plan; On Track to Emerge from Chapter 11 on October 1, 2025
Rhea-AI Summary
Hyperscale Data (NYSE American: GPUS) announced that its majority-owned defense business Gresham Worldwide has received final court approval for its Chapter 11 reorganization plan. The subsidiary is set to emerge from bankruptcy protection on October 1, 2025.
Upon emergence, Gresham Worldwide will be reconsolidated as a direct subsidiary, expected to contribute $40 million in annual sales to Hyperscale Data's consolidated results. The approved plan, resulting from extensive negotiations among creditors and stakeholders, aims to provide Gresham Worldwide with enhanced financial strength and operational stability.
Positive
- Expected contribution of $40 million in annual sales to consolidated results
- Court approval received for reorganization plan, enabling emergence from Chapter 11
- Strengthened balance sheet and operational stability post-reorganization
- Reconsolidation as direct subsidiary will strengthen Hyperscale Data's diversified platform
Negative
- Current bankruptcy status indicates previous financial difficulties
- Reorganization process likely involved significant costs and operational disruptions
News Market Reaction – GPUS
On the day this news was published, GPUS declined 0.05%, reflecting a mild negative market reaction. Argus tracked a peak move of +2.3% during that session. Argus tracked a trough of -7.1% from its starting point during tracking. Our momentum scanner triggered 5 alerts that day, indicating moderate trading interest and price volatility. This price movement removed approximately $8K from the company's valuation, bringing the market cap to $16.76M at that time.
Data tracked by StockTitan Argus on the day of publication.
Projected to Contribute
Upon emergence, Hyperscale Data expects to reconsolidate Gresham Worldwide as a direct subsidiary. The Company anticipates Gresham Worldwide will contribute approximately
"This is a pivotal milestone for both Hyperscale Data and Gresham Worldwide," said Milton "Todd" Ault III, Executive Chairman of Hyperscale Data. "Court confirmation of the plan enables Gresham Worldwide to emerge from Chapter 11 with renewed financial strength and operational stability. We believe the business is well positioned to deliver meaningful revenue and long-term value for our stockholders."
The confirmed plan reflects the outcome of extensive negotiations among creditors, management and other stakeholders, positioning Gresham Worldwide with a stronger balance sheet and a solid foundation for future success.
For more information on Hyperscale Data and its subsidiaries, Hyperscale Data recommends that stockholders, investors and any other interested parties read Hyperscale Data's public filings and press releases available under the Investor Relations section at hyperscaledata.com or available at www.sec.gov.
About Hyperscale Data, Inc.
Through its wholly owned subsidiary Sentinum, Inc., Hyperscale Data owns and operates a data center at which it mines digital assets and offers colocation and hosting services for the emerging artificial intelligence ("AI") ecosystems and other industries. Hyperscale Data's other wholly owned subsidiary, Ault Capital Group, Inc. ("ACG"), is a diversified holding company pursuing growth by acquiring undervalued businesses and disruptive technologies with a global impact.
Hyperscale Data currently expects the divestiture of ACG (the "Divestiture") to occur in the first quarter of 2026. Upon the occurrence of the Divestiture, the Company will be an owner and operator of data centers to support high-performance computing services, as well as a holder of digital assets. Until the Divestiture occurs, the Company will continue to provide, through ACG and its wholly and majority-owned subsidiaries and strategic investments, mission-critical products that support a diverse range of industries, including an AI software platform, social gaming platform, equipment rental services, defense/aerospace, industrial, automotive and hotel operations. In addition, ACG is actively engaged in providing private credit and structured finance through a licensed lending subsidiary. Hyperscale Data's headquarters are located at 11411 Southern Highlands Parkway, Suite 190,
On December 23, 2024, the Company issued one million (1,000,000) shares of a newly designated Series F Exchangeable Preferred Stock (the "Series F Preferred Stock") to all common stockholders and holders of the Series C Preferred Stock on an as-converted basis. The Divestiture will occur through the voluntary exchange of the Series F Preferred Stock for shares of Class A Common Stock and Class B Common Stock of ACG (collectively, the "ACG Shares"). The Company reminds its stockholders that only those holders of the Series F Preferred Stock who agree to surrender such shares, and do not properly withdraw such surrender, in the exchange offer through which the Divestiture will occur, will be entitled to receive the ACG Shares and consequently be stockholders of ACG upon the occurrence of the Divestiture.
Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements generally include statements that are predictive in nature and depend upon or refer to future events or conditions, and include words such as "believes," "plans," "anticipates," "projects," "estimates," "expects," "intends," "strategy," "future," "opportunity," "may," "will," "should," "could," "potential," or similar expressions. Statements that are not historical facts are forward-looking statements. Forward-looking statements are based on current beliefs and assumptions that are subject to risks and uncertainties.
Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update any of them publicly in light of new information or future events. Actual results could differ materially from those contained in any forward-looking statement as a result of various factors. More information, including potential risk factors, that could affect the Company's business and financial results are included in the Company's filings with the
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SOURCE Hyperscale Data Inc.