CalAmp Corp ( CAMP ) shares are trading lower by 53% to $1.25 during Monday’s session after the company announced a Restructuring Support Agreement (RSA) with its main secured lender, Lynrock Lake Master Fund LP. Lynrock will become the primary equity owner of CalAmp ( CAMP ) and will take the company private.

To strengthen its financial position, CalAmp ( CAMP ) plans to convert approximately $229 million of Convertible Senior Secured Notes held by Lynrock into equity. Despite the restructuring, CalAmp’s operations will continue normally, and partners will be paid as usual.

CalAmp ( CAMP ) has also initiated Chapter 11 bankruptcy proceedings in Delaware to facilitate the go-private transaction efficiently. Lynrock supports CalAmp’s long-term strategy and growth prospects. The RSA aims to quickly navigate the restructuring process upon court approval.

Chris Adams, CEO of CalAmp ( CAMP ), emphasized that savings from debt interest elimination and reduced public company overhead will be reinvested to support customer needs. CalAmp ( CAMP ) aims to emerge from this process with a stronger financial position and improved cash flow.

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According to data from Benzinga Pro, CAMP has a 52-week high of $50.14 and a 52-week low of $1.05.