Company: WW
Filing Date: 2025-05-09
Form Type: SCHEDULE 13D/A
Source: 0001731122-25-000699
Chunk: 0

Company: WW INTERNATIONAL, INC.
Filing Date: 2025-05-09
Form: SCHEDULE 13D/A
Chunk 0
---
 thereto and (ii) propose or consider one or more of the actions described in subparagraphs (a) - (j) of Item 4 of Schedule 13D. On May 6, 2025, the Issuer, together with its affiliated debtors (collectively, the "Issuer") filed for Chapter 11 bankruptcy protection, and their jointly administered cases are currently pending before the Honorable Craig Goldblatt in the United States Bankruptcy Court for the District of Delaware.  The Issuer--which we believe is not insolvent--has already commenced the solicitation of votes for a plan of reorganization (the "Plan") of which it seeks confirmation next month. Confirmation of the Plan would result in the prepetition lenders taking 91% of the reorganized company while existing equity would receive only 9% of the reorganized company, and this 9% of the reorganized company that would be issued to the Issuer's existing shareholders would be subject to dilution by a "Management Incentive Plan", which provides for the issuance of equity or equity-based awards equal to up to 10% of the common shares of the reorganized company, with the form of, participants in, and terms and conditions of the awards at the discretion of the Chief Executive Officer, subject to approval of board of directors of the reorganized company.  Further, under the Plan, the Issuer's unsecured creditors would be paid in full. We believe that there was no exigent financial distress precipitating the Issuer's bankruptcy filing, which will in large part destroy existing shareholder value to create a windfall to the Issuer's prepetition lenders.  Under these circumstances, we determined that the interests of the Issuer's existing shareholders would clearly not be adequately represented unless there is an official committee of equity security holders (an "Official Equity Committee") in the Issuer's Chapter 11 cases.  We strongly support the formation of an Official Equity Committee to protect the interests of the Issuer's shareholders. The overwhelming majority of the Issuer's funded debt is not due until 2028 and 2029 (with the modest Credit Facility maturing in 2026), and the Issuer's funded debt has favorable interest rates as compared to current market rates of interest.  While the Issuer reported revenue declines in Q1 2025, it also reported a substantial increase in adjusted earnings before interest, taxes, depreciation and amortization ("EBITDA") in the first quarter of 2025 to $