Data centre provider Internap (Inap) said it has filed for bankruptcy. CEO Peter Aquino said the move is part of a number of measures taken to reduce the company’s debt and to extend maturities, so that it can generate the cash flows needed to grow and reinvest. Aquino said all the steps were taken to strengthen the company’s capital structure and that Inap expects to emerge from bankruptcy quickly, as a private company that is financially stronger and well positioned to deliver its portfolio of premium data centre infrastructure and its cloud and network services.
As part of the measures taken, the company has signed a Restructuring Support Agreement (RSA) with an ad hoc lender group which holds about 77 percent of the company’s outstanding term loans. Filing for Chapter 11, in the Southern District of New York, was made with support from the ad hoc lender group. That group will provide the company with USD 75 million in additional financing. The money, together with existing operating cash flows, will enable all of the company’s businesses to continue operating as usual, and to drive future growth.
The company's plan of reorganisation is now under solicitation with lenders. Inap's non-US subsidiaries are not part of the company’s Chapter 11 cases.
