Linqto, along with Linqto Texas, Linqto Liquidshares and Linqto Liquidshares Manager, filed for voluntary Chapter 11 proceedings in the U.S. Bankruptcy Court for the Southern District of Texas. Linqto took this step to protect and maximize stakeholder value through a court-supervised restructuring and expects to continue operating throughout the restructuring process.
“After carefully evaluating Linqto’s alternatives, the board of directors made the decision that seeking a court-supervised restructuring was in the best interests of all Linqto customers to preserve, protect and maximize the value of Linqto’s assets for the benefit of its stakeholders,” Dan Siciliano, CEO of Linqto, said.
“Linqto cannot continue to operate under existing conditions without restructuring. The company faces potentially insurmountable operating challenges as a result of serious alleged securities law violations and related ongoing investigations by the Division of Enforcement of the U.S. Securities and Exchange Commission as well as other regulatory agencies. In addition, Linqto recently discovered several serious defects in the corporate formation, structure, and operation of the business that raise questions about what customers actually own and which management believes can only be fairly and effectively addressed through restructuring,” Siciliano said. “When the new management team was hired in early 2025, we made it clear that there can be no path forward that preserves value of customer interests without remediating alleged securities laws violations from prior management and not breaking the law. Despite reducing expenses, the only way forward is to seek court-supervised protection that will let us restructure the business into a profitable, law-abiding organization while resolving the ongoing regulatory investigations faster.”
Linqto has filed customary motions with the court seeking a variety of “first day” relief, including the authority to continue to pay essential employee wages and benefits, among other traditional reorganizational relief. Linqto expects to receive court approval for these requests.
Linqto has received a commitment for debtor-in-possession financing of up to $60 million from Sandton Capital Partners. Upon court approval, the additional liquidity from the DIP financing, combined with cash on hand, is expected to support critical business needs during these proceedings.
Linqto has hired bankruptcy and restructuring veteran Jeffrey S. Stein, managing partner at Breakpoint Partners, as chief restructuring officer. Stein brings decades of experience to this position as a leader and executive at both public and private companies. Stein has particular expertise in supporting companies that are driving meaningful business transformations and undergoing financial restructurings. This includes developing and enhancing corporate growth and turnaround strategies, evaluating financing alternatives, analyzing capital investment programs, managing complex litigation matters and assessing asset acquisition and disposition opportunities.
“Jeff’s expertise gives us confidence,” Siciliano said. “His tenor and experience will help lead us through the court-supervised restructuring and help Linqto emerge as a law-abiding entity that puts its customers first.”
Schwartz is serving as bankruptcy counsel. Portage Point Partners is serving as restructuring advisor and Jefferies is serving as investment banker. ThroughCo Communications is serving as communications advisor.
