Gauzy clears $61M in legacy debt, commits $7M in fresh equity

What's the deal? Gauzy (Nasdaq: GAUZ), an Israeli light and vision control technology company, has resolved roughly $61 million in legacy debt after the Tel Aviv-Jaffa District Court granted final approval of its comprehensive settlement, effective September 8, 2026. Alongside the settlement, the company secured a binding commitment for a $7 million equity investment (PIPE) led by management.

Why now? The settlement, filed under Israel's Insolvency and Economic Rehabilitation Law, drew support from creditors representing 98.96% of voting claims across every class — including 100% of secured lenders OIC Investment Agent LLC and Bank Mizrahi-Tefahot Ltd.Dealroom has a profile for this one. Try Dealroom → That near-unanimous mandate cleared the path to court confirmation.

What's covered? The deal resolves substantially all pre-petition liabilities — secured, employee, institutional-priority, and general unsecured claims — spanning creditors in Israel, the United States, and Germany. The new capital will fund working capital, professional fees, and priority employee obligations.

What's the endgame? With final approval obtained, the automatic stay under Israeli insolvency law has been lifted, and all legacy claims, executions, and legal proceedings have been resolved, settled, or withdrawn. Scattered secured claims are being consolidated into a single security structure administered by the settlement trustees.

The signal: The restructuring lets Gauzy operate as a debt-settled public company focused on its core Smart Glass business, trading a heavy legacy capital structure for a de-risked balance sheet and a fresh, if modest, capital base.

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