Velti is selling its US, UK and Indian mobile marketing businesses, as well as some of its US-based advertising businesses, to affiliates of GSO Capital Partners LP, the credit division of Blackstone. Businesses involved in the sale include business lines operated by Velti and Air2Web in the US; Air2Web India; and Velti DR and Mobile Interactive Group in the UK. Additionally, GSO has committed to provide up to $25m in debtor-in-possession financing, including a $10m cash injection to support the operations included in the proposed sale.

Velti said that all operations included in the proposed sale agreement will continue as normal throughout the sale process, which is expected to close by the end of 2013. That said, Veltis US operations, including Velti and Air2Web, have filed for Chapter 11 bankruptcy, which gives them an opportunity to restructure their debts. The UK and Indian operations, together with those in Greece, China, Brazil, Russia, the United Arab Emirates, or any other jurisdictions outside the US, are not included in the Chapter 11 filing.

Another Velti business, the Mobclix mobile ad network unit, has filed for Chapter 7 bankruptcy (liquidation). Publishers have been abandoning the platform owing to Mobclixs inability to pay them on time. This stemmed from Veltis inablity to collect payments from its customers. Velti was hit hard by bad debts in Greece and Cyprus. In those two countries alone, it wrote down more than $100m in receivables in Q2, 2013. 

Velti CEO, Alex Moukas, said the sale agreement and GSOs recent acquisition of Velti’s secured debt, demonstrated GSOs commitment to providing the business with the support necessary to grow and prosper.

“Importantly, this process will be virtually invisible to customers, all of whom can continue to rely on Velti to provide premier technology and solutions to support their own businesses,” said Moukas.

Velti shares are currently trading at $0.09, having closed at $0.29 on Friday. Veltis shares peaked at $20 in 2011, the year the company went public.