By Chris Wack
Edgio shares dropped after the company said it, along with certain of its affiliates, voluntarily filed for chapter 11 relief in the U.S. Bankruptcy Court for the District of Delaware.
The stock was at its 52-week low of $2.25, down 64%, in early Monday trading, and is down 81% in the past 12 months.
The internet technology company said the bankruptcy move will hopefully allow it to effectuate one or more sale transactions that should allow for the continued operation of the business under new ownership.
The Phoenix-based company entered the process with the support of its primary lender, Lynrock Lake Master Fund LP.
Edgio said it has entered into a stalking horse asset purchase agreement with Lynrock, which has agreed to buy assets through a credit bid in the amount of $110 million of the existing secured debt held by Lynrock. The company said it previously 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 intends to use a court-supervised sale process to seek the highest or otherwise best bid for its assets.
Edgio has also entered into an agreement to receive $15.6 million in debtor-in-possession financing from Lynrock that is expected to ensure continuity of delivering its products to customers in the ordinary course throughout the sale process and chapter 11 cases.
Write to Chris Wack at chris.wack@wsj.com
(END) Dow Jones Newswires
September 09, 2024 09:55 ET (13:55 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.
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