# Our Restructuring

> Koombea Inc. is reorganizing under Subchapter V. The court has confirmed our plan, effective November 15, 2026. What did and did not change.

Source: https://www.koombea.com/restructuring/

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Koombea Inc. is reorganizing under Subchapter V of Chapter 11. The court has
confirmed our plan, and it takes effect on November 15, 2026. We operate
normally today, with the same leadership and the same commitments to our
clients.

Here is the whole picture, so you do not have to assemble it from a court
docket.

- In December 2025, Koombea Inc. filed for reorganization under Subchapter V
  of Chapter 11 in the U.S. Bankruptcy Court for the Middle District of
  Florida, Fort Myers Division (Case No. 2:25-bk-02556-FMR).
- The court confirmed our plan of reorganization, and it will take effect on
  November 15, 2026.
- Every class of creditors that voted on the plan voted to accept it. No class
  voted against it.
- The case covered Koombea Inc., the U.S. entity, and no affiliate entity was
  part of it.
- We delivered for our clients throughout the process, and they continue to
  work with us today.

## Key dates

| Date | Milestone |
| --- | --- |
| December 22, 2025 | Koombea Inc. files under Subchapter V of Chapter 11 |
| June 16, 2026 | The court enters the order confirming the plan of reorganization |
| November 15, 2026 | The plan of reorganization takes effect |

## What this means for your project

Nothing changes in how we work with you.

**Contracts and pricing.** Existing agreements stay in force on their current
terms.

**Your team.** The same people stay on your engagement.

**Data and security.** Your data, access controls, and security practices are
unchanged. Our governance, risk, and compliance (GRC) team still oversees them.

**Billing.** Invoicing and payment terms work exactly as before.

**Support and maintenance.** Support, maintenance, and roadmap work continue
without interruption.

## What happened

During and after the pandemic, demand for software development surged. Firms
across our industry hired hard to keep up. When demand softened, layoffs
followed almost everywhere. [Layoffs.fyi](https://layoffs.fyi/), which tracks
job cuts across the technology sector, recorded more than 260,000 tech layoffs
in 2023 alone.

Koombea grew with that wave. Where we differed is that we believed the slowdown
was temporary, and we kept our larger team longer than we should have. That
decision created obligations too large for the business at its new size, and it
is the reason for the restructuring. As founder and CEO, I own that mistake.

We chose Subchapter V because it is built for operating businesses that intend
to keep running. It let us restructure those obligations under court
supervision while we continued to serve every client. This was a
reorganization, not a wind-down.

## What did not change

Our clients' work never stopped. Here is what held through the entire process.

**Delivery.** Every active engagement continued on schedule, with the same
teams.

**Our clients.** Fortune 500 companies, healthcare organizations, and startups
continue to work with us. Some have built with us for years.

**Our people.** The team is more senior today than at any point in our history.

**Our capabilities.** We have built software since 2007. Our GRC team has
HIPAA and SOC 2 experience, and we are a Stripe partner.

**Leadership.** The same founder and leadership team run the company today.

## How every engagement protects you

Your product should never depend on any vendor's balance sheet, including ours.
Every Koombea engagement is structured so you stay in control.

**You own your code and infrastructure from day one.** Repositories and cloud
accounts live in your name, and the IP is yours as you pay for it.

**Milestone billing.** You pay for delivered work, never far ahead of it.

**Documentation and handover standards in every Statement of Work.** Any
competent team can pick the work up at any point.

**A paid discovery sprint to start.** You can judge our work at low risk before
you commit to a full build, and you keep everything it produces.

**Compliance built in from the first sprint.** Our GRC team designs for HIPAA,
SOC 2, and data protection from the start, not as a patch before launch.

We would recommend these terms to any client working with any vendor. We offer
them by default.

## Where to ask

Diligence questions go to
[legal@koombea.com](mailto:legal@koombea.com). Jonathan Tarud, founder and CEO,
answers them personally.

The confirmation order and client references are available on request.
Questions about a specific engagement go to your usual Koombea contact.