Gauzy Resolves Legacy Debt Through Court-Approved Settlement

TEL AVIV, Israel, Sept. 18, 2026 /CourierPR/ -- Gauzy Ltd., a global leader in light and vision control technology, has resolved its legacy debt through a court-approved comprehensive settlement, effective September 8, 2026. The resolution, granted under Israel’s Insolvency and Economic Rehabilitation Law, 5758-2018, in Insolvency Proceeding No. 51175-03-26, marks a significant milestone for the company.

The settlement, which garnered near-unanimous support, received a 98.96% mandate from creditors across all classes, including 100% approval from the secured lenders, OIC Investment Agent LLC and Bank Mizrahi-Tefahot Ltd. This overwhelming support underscores the trust placed in Gauzy’s future by its stakeholders.

Approximately $61 million of pre-petition liabilities, including secured, employee, institutional-priority, and general unsecured claims, have been fully resolved under the settlement. The resolution brings an end to a fragmented and contested debt stack, replacing it with a single, court-approved, fully consensual arrangement.

To ensure the settlement is fully financed, Gauzy has secured a binding commitment for a $7 million private investment in public equity (PIPE) led by CEO Eyal Peso. The new equity capital will be used to fund immediate working capital, professional fees, and priority employee obligations, ensuring the company’s near-term liquidity is on a fully-funded basis.

With the automatic stay under Israeli insolvency law lifted, all legacy debt claims, executions, and legal proceedings against Gauzy have been resolved, settled, or withdrawn. The company’s previously scattered secured claims are being consolidated into a single, unified security structure administered by the settlement trustees. These trustees will release the security interests as the company completes its repayment obligations.

Gauzy’s strategic focus will now shift to its core business, including its Advanced Driver-Assistance Systems (ADAS) and Camera Monitor Systems (CMS) product range for commercial vehicles, and its state-of-the-art Smart Glass technologies for the automotive, aeronautics, and architecture segments. The company intends to concentrate its resources and go-to-market efforts on these core product lines, converting its existing order backlog and pipeline into revenue growth.

Upon completion of the related management buyout, Gauzy’s fully diluted share capital will be held as follows:

- 70% of the net proceeds from any Exit Event (defined as a sale, merger, or similar liquidity event) will be applied to the settlement fund for the benefit of creditors, up to the amount required to satisfy the company’s outstanding obligations under the settlement. - The remainder of the proceeds will be retained by the company and/or its shareholders.

The company will make monthly payments into the settlement fund over a 72-month period, starting April 1, 2027. The payments will be as follows: - $200,000 per month for the first 24 months, - $250,000 per month for the following 24 months, and - $300,000 per month for the final 24 months.

These payments, totaling approximately $18 million over the life of the settlement, will be supplemented by any proceeds from an Exit Event.

CEO Eyal Peso commented, "A 99% creditor vote, with every single one of our secured lenders voting in favor, is about as close to unanimous as a restructuring gets. It is a direct reflection of the trust our creditors, employees, shareholders, and secured lenders place in this Company and in where we are headed."

This resolution is designed to maximize creditor recoveries while supporting the company’s continued operations and rehabilitation. Gauzy is now free to run its day-to-day operations, capital planning, and customer commitments without the overhang of contested legacy claims or active creditor litigation.