Internap files for bankruptcy protection
Did not see this one coming, Internap, the pioneers in advanced ip transit routing technology and a premium colocation provider announced within the last 24 hours that it is bankrupt.
Their plan is to restructure debt and relieve the company of some of its $700+ million dollars in liabilities and to continue operating.
Colocation provider INAP filed for Chapter 11 bankruptcy today, citing the need to strengthen its capital structure after failing to find a buyer or strategic partner. The company said it would continue operating and supporting its customers, and that the bankruptcy restructuring would allow it to significantly reduce its debt load.
The bankruptcy filing arrives amid an unsettled financial landscape, with steep declines in global markets amid the spread of the Coronavirus.
In its prepackaged Chapter 11 petition, INAP reported assets of $724 million and debts of $785 million. In a prepackaged filing, the lender and its creditors negotiate a restructuring plan prior to the filing, an approach that can shorten the trip through the bankruptcy process. INAP stock fell 58 percent on the day to 14 cents a share.
INAP operates in 21 markets around the world, offering high-density colocation, managed cloud hosting and powerful network services. INAP has more than 1 million square feet of data centers, including about 600,000 square feet of technical data center space.
Pretty surprising times.