Tallwood Venture Capital arranged $27.9 million in debtor-in-possession financing for Wave Computing, which filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the Northern District of California, San Jose Division.

The bankruptcy process will allow Wave Computing to restructure its liabilities and position the business for long-term growth. The DIP facility will provide the business sufficient liquidity to continue regular business operations through the bankruptcy process. Wave Computing expects no disruption to existing customers during the Chapter 11 process. All existing management will remain in place.

Wave Computing also appointed Lawrence Perkins of SierraConstellation Partners as chief restructuring officer and Thomas FitzGerald as an independent board director. Perkins will lead, manage and oversee the company’s restructuring process with the assistance of Wave Computing’s management team. FitzGerald is an experienced board director who has spent more than three decades in corporate leadership roles, including guiding companies through restructurings.

“After extensive consultations and discussions with the board, creditors and advisers, we determined that restructuring Wave Computing through the Chapter 11 process was the best and most efficient way to ensure the business has the financial flexibility to pursue further commercialization of our technology and grow over the long term,” Perkins said. “Today’s actions combined with recent efforts to focus Wave’s strategy will yield a fundamentally stronger business upon emergence from Chapter 11 with a promising strategy for our unique dataflow technology and intellectual property assets. I am deeply grateful for the Wave team, who are continuing to deliver for our customers.”

Wave has filed a series of customary “first day” motions with the bankruptcy court. When granted, these motions will enable day-to-day operations, regular payment of employee wages and benefits, and payment to key vendors for goods and services provided on or after the filing date to continue as usual.

Sam Newman of Sidley Austin is serving as legal counsel to Wave Computing, and SierraConstellation Partners is serving as financial and restructuring adviser.

Wave Computing is a processor technology company focused on the fields of AI and deep learning.