SCHEDULE: Mudrick Capital Management Amends Schedule 13D Filing

Mudrick Capital Management, L.P. and affiliated entities have filed an amendment to their Schedule 13D, reporting a significant beneficial ownership stake in Getaround, Inc. and indicating support for the company's dissolution and wind-down.

Summary

• This filing is an amendment (Amendment No. 12) to a Schedule 13D originally filed on May 15, 2023, concerning the common stock of Getaround, Inc.
• The reporting persons, including Mudrick Capital Management, L.P. and various affiliated funds and entities, collectively beneficially own 977,645,148 shares of Getaround's common stock.
• This ownership stake represents 90.9% of the class of securities outstanding, based on 1,074,959,854 shares of common stock outstanding.
• The reported shares include directly held common stock, shares issuable upon conversion of convertible notes, and shares issuable upon the exercise of warrants.
• The reporting persons intend to support Getaround, Inc.'s proposal to dissolve and wind down its operations, as disclosed by the company.
• Following a special meeting of stockholders, it is expected that Getaround, Inc. will dissolve, cease operations, and wind down its affairs.

Sentiment

Score: 2

Explanation: StockSavvy.ai views this filing as negative due to the explicit intention to dissolve and wind down the company's operations, indicating a lack of future prospects for the business itself.

Positives

• The reporting persons hold a substantial majority (90.9%) of Getaround, Inc.'s common stock, indicating significant control or influence.
• The conversion of convertible notes and exercise of warrants demonstrate active engagement with the company's financial instruments.

Negatives

• The filing indicates the company's intention to dissolve and wind down operations, suggesting a lack of viable future business prospects or a strategic decision to cease operations.
• The significant stake held by Mudrick Capital Management, L.P. and its affiliates, coupled with the dissolution plan, implies a potential exit strategy rather than a growth-oriented investment.

Risks

• The primary risk highlighted is the company's planned dissolution and wind-down of operations, which could lead to the complete loss of investment value for remaining shareholders if not managed effectively.
• The complex structure of beneficial ownership among multiple affiliated entities could introduce complexities in governance and decision-making during the wind-down process.

Future Outlook

The future outlook for Getaround, Inc. is one of dissolution and wind-down of operations, as supported by the reporting persons. The company is expected to cease conducting its business and liquidate its affairs.

Management Comments

• The reporting persons intend to support the Issuer's proposal to dissolve and wind down operations in accordance with the DGCL at the Issuer's upcoming Special Meeting of Stockholders.
• It is expected that following such special meeting, the Issuer will dissolve, cease to conduct its business and wind down its affairs in accordance with the DGCL.

Industry Context

StockSavvy.ai notes that the planned dissolution of Getaround, Inc. reflects a challenging environment for car-sharing platforms, potentially due to intense competition, regulatory hurdles, or unsustainable business models. This move by Mudrick Capital Management, a distressed debt and special situations investor, suggests a strategic decision to liquidate assets rather than pursue further operational growth.

Stakeholder Impact

• Shareholders: The planned dissolution and wind-down of operations will likely result in the liquidation of the company's assets, with proceeds distributed to shareholders. The ultimate return to shareholders will depend on the value of these assets and the costs of liquidation.
• Employees: Employees are likely to face job losses as the company ceases operations.
• Creditors: Creditors will be prioritized in the distribution of assets during the wind-down process, but their recovery will depend on the company's asset value and liabilities.
• Suppliers: Suppliers may face challenges in receiving payment for outstanding invoices as the company winds down.

Next Steps

• Getaround, Inc. is expected to dissolve and wind down its operations following a Special Meeting of Stockholders.
• The reporting persons will support the company's proposal for dissolution and wind-down.

Key Dates

Keywords

Getaround, Schedule 13D, Mudrick Capital Management, Beneficial Ownership, Dissolution, Wind-down, Convertible Notes, Warrants, SEC Filing, Amendment