Gauzy discloses debt settlement with substantial shareholder dilution

Gauzy ($GAUZ) disclosed court approval of a restructuring addressing approximately $61 million of legacy liabilities, alongside a binding $7 million equity-funding commitment led by management. The arrangement lifts the insolvency stay and consolidates creditor recoveries under a single settlement. The underlying court decision took effect before the public announcement.

Existing shareholders are expected to retain 30% of fully diluted equity after the related management buyout, with management holding 50% and creditors 20%. Gauzy must also contribute about $18 million to a settlement fund over six years, with additional recovery provisions tied to an exit event. The agreement therefore restructures claims rather than making all obligations disappear without cost. The ownership allocation represents substantial dilution, while the new funding remains a commitment.

Sources:

• Gauzy — court settlement, repayment schedule and ownership terms, GlobeNewswire reprint