Reston IT company emerges from bankruptcy with new CEO
Internap Corp. originally filed for protection on March 16.
Reston-based IT infrastructure company Internap Corp. (INAP) announced Tuesday it has emerged from Chapter 11 bankruptcy protection with a new CEO and $300 million in liquidity. The company originally filed for bankruptcy protection March 16.
“When we began the restructuring process, we did so with a clear objective of strengthening our capital structure and best positioning INAP for long-term growth and success,” Peter D. Aquino, outgoing INAP chairman and CEO, said in a statement. “Our ability to achieve this goal and emerge from Chapter 11 as quickly as we did is a testament to our incredibly talented team and the strong relationships we have cultivated with our customers and partners.”
In addition to the financial restructuring, INAP has also promoted Michael Sicoli, former president and chief financial officer, to CEO.
“With our new capital structure in place, we are stronger than ever and poised to grow by delivering the most compelling combination of colocation, cloud and network services in the industry,” Sicoli said in a statement.
In the March 16 statement INAP released confirming it would be filing for Chapter 11 bankruptcy, the company said it would continue to function and had joined up with a group of lenders that hold 77% of the company’s outstanding term loans. The lenders would provide the company with debt financing of approximately $75 million, according to the INAP release.
INAP planned and implemented a debt-for-equity financial restructuring process, which was confirmed by the U.S. Bankruptcy Court for the Southern District of New York on May 4. The company has closed on a five-year, $225 million term loan facility (a formal financial assistance program) and a three-year $75 million exit facility, which the company says will continue to enhance its liquidity.
INAP operates a total of more than 1 million square feet of data center space among its 49 centers globally.