Internap Corporation (INAP) entered into a restructuring agreement with a lender group led by Jefferies Finance, and filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of New York. According to a related 8K filed with the SEC, Jefferies Finance acted as administrative agent and collateral agent for a $75 million debtor-in-possession facility for INAP.
“INAP has been exploring strategic alternatives and financial initiatives to best position the company in an ever-evolving IT infrastructure landscape. After a thoughtful evaluation of all available options, today, we are taking decisive action to strengthen our capital structure,” Peter Aquino, chairman and CEO of INAP, said. “We expect to emerge quickly, financially stronger and well positioned to deliver our comprehensive portfolio of premium data center infrastructure, best-in-class cloud solutions and high-performance network services well into the future.”
This financing, combined with INAP’s existing operating cash flows, will allow all of INAP’s businesses to continue operating as usual. The company’s plan of reorganization, which is under solicitation with lenders, anticipates INAP will emerge from this process as a private company with an improved strategic and financial position.
“We appreciate the support we have received from our existing lender group, which underscores their belief in our business and commitment to its growth,” Michael Sicoli, president and CFO of INAP, said. “We look forward to working with them closely as we move ahead to invest in our business to meet the ever-growing demands of our customers and channel partners.”
The company filed customary motions that will allow it to maintain employee wage and benefit programs, customer programs and vendor payments for goods and services delivered in the ordinary course.
INAP’s non-U.S. subsidiaries, including iWeb Technologies, Internap Network Services U.K. Limited, Internap Network Services B.V., SingleHop B.V. and INAP Japan, are not part of the company’s Chapter 11 cases.
INAP is a provider of data center and cloud solutions.
