The US Bankruptcy Court approved the solicitation version of modified amended joint plan of reorganization and disclosure statement of IronNet, Inc. on January 18, 2024. The debtor has filed its plan in the Court on December 12, 2023. As per the plan, administrative claims, professional fee claims, priority tax claims, United States Trustee Statutory fees, other secured claims, shall be paid in full in cash.

DIP facility claims shall receive its pro rata share of the new common equity, if restructuring is consummated, or shall receive payment in full in cash if sale transaction is consummated. IronNet secured note claims of $23.53 million and OpCo secured note claims of $1.5 million shall receive its pro rata share of the new common equity in reorganized IronNet if restructuring occurs; if a sale transaction occurs, then IronNet secured note claims and OpCo secured note claims shall be paid its pro rata share of cash. OpCo Other Unsecured Claims is changed to OpCo Unsecured Non-Trade Claims shall receive Pro Rata Share of Lump Sum Payment in event of restructuring and shall receive prorata share of remaining cash otherwise.

IronNet Unsecured Note Claims shall receive its Pro Rata Share of (a) 89.6% of the New Common Equity, if the 3i Settlement and the Korr Settlement are approved by the Bankruptcy Court or (b) 100% of the New Common Equity, if the 3i Settlement and the Korr Settlement are not approved by the Bankruptcy Court, in each case, subject to dilution by the Management Incentive Plan and any equity (including any equity-like instrument) issued in connection with the Exit Facility, and the Settlement Consideration in the event of restructuring and pro rata share in the event of sale. IronNet Unsecured Note Claims of $8.45 million shall be paid in cash. OpCo General Unsecured Claims is changed to OpCo Unsecured Trade Claims of $3.91 million shall be paid in full in cash.

IronNet General Unsecured Claims of $0.55 million shall receive no distribution and cancelled in event of restructuring and shall receive pro-rata share of remaining cash otherwise. OpCo Other Unsecured Claims is changed to OpCo Unsecured Non-Trade Claims of $3.91 million shall be recovered 77% i.e., $3.01 million shall receive Pro Rata Share of Lump Sum Payment in event of restructuring and shall receive pro rata share of remaining cash otherwise. Subordinated Claims shall receive no distribution in event of restructuring and shall receive pro rata share of remaining cash otherwise.

Intercompany Claims of $312.24 million and Intercompany Interests of $196.98 million shall receive no distribution under the plan and shall be reinstated. Equity Interests in IronNet shall receive no distribution under the plan, and all equity interests in IronNet shall be released, discharged, and extinguished if reorganization occurs. If sale transaction occurs, then equity interests in IronNet shall receive any remaining cash after all other claims are paid in full.

The plan shall be funded through cash, sale of assets, and exit facility.