A year after launching its IPO, Tintri filed a voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code. The company will continue to operate its businesses as a debtor-in-possession under the jurisdiction of the bankruptcy court.
Tintri intends to continue its efforts to enter into a strategic transaction, including a sale of the company or its assets, following the bankruptcy filing. In this regard, the company has entered into a letter of intent with DataDirect Networks (DDN), which is contemplating the purchase of substantially all of the company’s assets under Section 363.
The DDN letter of intent is non-binding and provides no guarantee that a transaction will be completed. The terms of any potential transaction with DDN, or any other strategic counterparty, are subject to a number of contingencies, including the negotiation and execution of definitive transaction agreements, the completion of a bidding process as provided for by the bankruptcy court and final approval by the court. Consequently, there can be no assurance that Tintri’s efforts to consummate a strategic transaction, including the proposed transaction with DDN, will be successful.
Furthermore, even if Tintri were to complete a strategic transaction, the proceeds of any such transaction may be insufficient to allow the company to pay its creditors in full. In any event, Tintri does not anticipate that its stockholders will receive any return on their shares.
Tintri has arranged for financing that is intended to bridge the company to a strategic transaction. This financing is expected to consist of amounts available under a proposed $5.5 million super-priority secured debtor-in-possession credit facility with TriplePoint Capital and the continued use of accounts receivable collections under the company’s secured credit facility with Silicon Valley Bank. This financing is subject to, among other things, the approval of the bankruptcy court.
“We are very pleased to be closely collaborating with Tintri’s cofounders, team members, advisors and creditors to develop a winning plan which is designed to provide Tintri’s customers with continuity in support of their installed base as well as a winning roadmap for their long term requirements,” said Alex Bouzari, CEO and co-founder of DDN.
“Tintri looks forward to continuing to work with DDN on its proposal, which, if completed, would be expected to allow the company to continue to provide its industry-leading technology to the marketplace following the bankruptcy process and into the future,” said Kieran Harty, Tintri’s founder and chief technology officer.
Tintri offers an enterprise cloud infrastructure built on a public-cloud-like web service architecture and RESTful APIs.
