Savi Technology, Inc.

Information for Creditors of Savi Technology, Inc.

Case Number 21-11369 in the United States Bankruptcy Court for the Eastern District of Virginia


Savi Technology, Inc. (“Savi”) filed for bankruptcy on August 4, 2021. Savi is “a pioneer, innovator and inventor of technologies and products that leverage sensors to improve operational analysis, efficiency and insights. The Debtor’s products combine superior, low-cost IoT sensors with machine learning algorithms that produce the most advanced insight analytics.” This description of Savi’s business is from a paper filed in the bankruptcy case.

The details of Savi’s pre-bankruptcy business are thin in the papers that have been filed so far. Savi reports that it has $1-10 million in assets and $10-50 million in liabilities, with somewhere between 50 and 99 creditors. Savi will need to provide substantially more information and narrow these wide ranges, but that information has not been provided yet.

Similarly, Savi has yet to provide its plans for the bankruptcy case. We do not know if Savi intends to reorganize, sell, or liquidate its assets. Reorganization is the most common reason for companies to file for Chapter 11, so that is likely what Savi will try to do.


A 341 meeting is conducted in each Chapter 11 Bankruptcy Case by the United States Trustee’s attorney. The Debtor’s representative – usually its CEO – is required to attend. At the 341 meeting, the United States Trustee and creditors ask the Debtor’s representative questions about the Debtor’s finances, why the Debtor is in bankruptcy, and how the Debtor intends to repay its creditors.

The 341 meeting in this case is scheduled to occur on September 9, 2021. Creditors have a right to attend the 341 meeting themselves or through their attorneys. A lot of information can be derived at the 341 meeting. Some topics that creditors should address include:

  1. Why the Debtor’s President & CEO J. Richard Carlson and Secretary Edward E. How, III resigned effective July 28th when they were authorized to file for bankruptcy on July 21st.
  2. How the Debtor pays for its utilities at its location when it only requested authority to provide adequate assurance for its internet and cell phone providers.
  3. What the Debtor’s relationship to its secured lender, Eastward Fund Management, LLC, is and whether the Debtor and Eastward share any common ownership.


It is still extremely early in this bankruptcy case and not much has happened yet. Still, to a trained eye, the early filings raise some red flags for unsecured creditors. The Debtor has yet to provide substantial information about its assets and liabilities but it reports owing more than its assets are worth. Despite this, the Debtor proposes to agree to pay its secured lender, Eastward, interest at the default interest rate for at least three months.

Certain assets of the Debtor are earmarked for Eastward in its filings already. The Debtor has agreed that it can pay any expense that it agrees with Eastward is appropriate to pay, without needing to get a Court order. This opens the door for Eastward to charge fees and expenses to the Debtor without Court oversight.

These are only some of the issues that should give unsecured creditors pause at this early stage of the bankruptcy case. Unsecured creditors will have the opportunity to form an official committee of creditors, which would be able to retain counsel at the expense of the Debtor and oversee the bankruptcy case to make sure that all creditors are treated fairly. If you have questions about this bankruptcy case or serving on a committee generally, reach out to PRLT today.

PRLT does not represent Savi Technology, Inc.. The content on this page is provided for informational purposes only. Nothing on this page or this website creates an attorney/client relationship between you and PRLT. Nothing on this page is legal advice. If you have any questions about the Savi Technology bankruptcy case or anything discussed on this page, please contact us.

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