Note 19. Related-Party Transactions

Successor

As discussed in Note 12, in October 2020, the Company reached a settlement with the Predecessor’s shareholders, resulting in the Company recording a $2.0 million charge related to the settlement agreement reached between the Company and the Predecessor shareholders that is included in general and administrative expenses in the accompanying consolidated statements of operations.  The corresponding due to related party is included in accrued expenses and other current liabilities in the accompanying consolidated balance sheets and is expected to be settled as the income tax refunds from the IRS are received.

Predecessor

The Predecessor had a Management Services Agreement, as amended from time to time, with PGP Advisors, LLC (“PGP”), the Predecessor’s largest shareholder, to provide advisory, consulting and other professional services. Under the terms of the agreement the annual fee for these services was $4.0 million from September of 2017 through August of 2019, and $2.0 million annually thereafter. For the period from November 1, 2018 through December 5, 2018, the Predecessor incurred no fees related to this agreement and other agreed upon expenses. These expenses were included in general and administrative expenses on the accompanying consolidated statements of operations. In conjunction with the Business Combination, this agreement was terminated.