Edgio files for chapter 11 bankruptcy
September 10, 2024
Edgio, a provider of media content and cyber-security solutions, has voluntarily filed for chapter 11 relief in the US Bankruptcy Court for the District of Delaware to effectuate one or more sale transactions that it says “should” allow for the continued operation of the company’s business under new ownership.
The company enters this process with the support of its primary lender, Lynrock Lake Master Fund. To anchor the sale process, Edgio has entered into a stalking horse asset purchase agreement with Lynrock, which has agreed to acquire assets of the company through a credit bid in the amount of $110 million (€99.7m) of the existing secured debt held by Lynrock.
Prior to the commencement of Chapter 11 Cases, Edgio said it engaged in discussions with a number of interested parties with respect to a potential sale of all or part of its businesses and assets. In response to such interest, the company now intends to use a Court-supervised sale process to seek the highest or otherwise best bid for its assets, including its individual business product offerings.
Edgio is targeting the sale process to be completed in approximately 80 days, or sooner.
“We are confident the flexibility gained through this process will enable the continued delivery of video streaming and web security solutions to our over 935 global customers who rely on us daily,” commented Todd Hinders (pictured), CEO at Edgio.
Edgio has also entered into an agreement to receive approximately $15.6 million in principal amount of funded debtor-in-possession (DIP) financing from Lynrock that, following approval by the Court, is expected to ensure continuity of delivering its products to customers in the ordinary course throughout the sale process and Chapter 11 Cases. To avoid any disruption to its operations, Edgio has also filed standard ‘first day’ motions in the Chapter 11 Cases, seeking court approval to continue supporting its operations throughout the sale process. These motions, upon approval, aim to help facilitate the continued payment of employee wages and benefits, enable payments to critical vendors and other relief measures customary in these circumstances.