Company: HVIIR
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001741
Chunk: 67

Company: Hennessy Capital Investment Corp. VII
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 67
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 Accordingly, any indemnification provided will be able to be satisfied by HVII only
if (i) it has sufficient funds outside of the trust account or (ii) it consummates an initial business combination. HVII’s obligation
to indemnify its officers and directors may discourage shareholders from bringing a lawsuit against its officers or directors for breach
of their fiduciary duty. These provisions also may have the effect of reducing the likelihood of derivative litigation against HVII’s
officers and directors, even though such an action, if successful, might otherwise benefit HVII and its shareholders. Furthermore, a
shareholder’s investment may be adversely affected to the extent HVII pays the costs of settlement and damage awards against its
officers and directors pursuant to these indemnification provisions.

If,
after HVII distributes the proceeds in the trust account to its public shareholders, HVII files a bankruptcy or winding-up petition or
an involuntary bankruptcy or winding-up petition is filed against HVII that is not dismissed, a bankruptcy or insolvency court may seek
to recover such proceeds, and HVII and its board may be exposed to claims of punitive damages.

If,
after HVII distributes the proceeds in the trust account to its public shareholders, HVII files a bankruptcy or winding-up petition or
an involuntary bankruptcy or winding-up petition is filed against HVII that is not dismissed, any distributions received by shareholders
could be viewed under applicable debtor/creditor and/or bankruptcy and/or insolvency laws as either a “preferential transfer”
or a “fraudulent conveyance.” As a result, a bankruptcy or insolvency court could seek to recover all amounts received by
HVII’s shareholders. In addition, HVII’s board of directors may be viewed as having breached its fiduciary duty to HVII’s
creditors and/or having acted in bad faith, thereby exposing itself and HVII to claims of punitive damages, by paying public shareholders
from the trust account prior to addressing the claims of creditors.

If,
before distributing the proceeds in the trust account to HVII’s public shareholders, HVII files a bankruptcy or winding-up petition
or an involuntary bankruptcy or winding-up petition is filed against HVII that is not dismissed, the claims of creditors in such proceeding
may have priority over the claims of HVII’s shareholders and the per-share amount that would otherwise be received by HVII’s
shareholders in connection with its liquidation may be reduced.

If,
before distributing the proceeds in the trust account to HVII’s public shareholders,