Inap (Internap) files for bankruptcy

InceptionHosting

Source: https://www.telecompaper.com/news/inap-files-for-bankruptcy-with-support-from-new-group-of-lenders--1330592

Tuesday 17 March 2020 | 09:21 CET | News
Data centre provider Internap (Inap) said it has filed for bankruptcy. CEO Peter Aquino said the move is part of a number of measures taken to reduce the company’s debt and to extend maturities, so that it can generate the cash flows needed to grow and reinvest. Aquino said all the steps were taken to strengthen the company’s capital structure and that Inap expects to emerge from bankruptcy quickly, as a private company that is financially stronger and well positioned to deliver its portfolio of premium data centre infrastructure and its cloud and network services.

As part of the measures taken, the company has signed a Restructuring Support Agreement (RSA) with an ad hoc lender group which holds about 77 percent of the company’s outstanding term loans. Filing for Chapter 11, in the Southern District of New York, was made with support from the ad hoc lender group. That group will provide the company with USD 75 million in additional financing. The money, together with existing operating cash flows, will enable all of the company’s businesses to continue operating as usual, and to drive future growth.

The company's plan of reorganisation is now under solicitation with lenders. Inap's non-US subsidiaries are not part of the company’s Chapter 11 cases.

seriesn

@AnthonySmith said:
Source: https://www.telecompaper.com/news/inap-files-for-bankruptcy-with-support-from-new-group-of-lenders--1330592

Tuesday 17 March 2020 | 09:21 CET | News
Data centre provider Internap (Inap) said it has filed for bankruptcy. CEO Peter Aquino said the move is part of a number of measures taken to reduce the company’s debt and to extend maturities, so that it can generate the cash flows needed to grow and reinvest. Aquino said all the steps were taken to strengthen the company’s capital structure and that Inap expects to emerge from bankruptcy quickly, as a private company that is financially stronger and well positioned to deliver its portfolio of premium data centre infrastructure and its cloud and network services.

As part of the measures taken, the company has signed a Restructuring Support Agreement (RSA) with an ad hoc lender group which holds about 77 percent of the company’s outstanding term loans. Filing for Chapter 11, in the Southern District of New York, was made with support from the ad hoc lender group. That group will provide the company with USD 75 million in additional financing. The money, together with existing operating cash flows, will enable all of the company’s businesses to continue operating as usual, and to drive future growth.

The company's plan of reorganisation is now under solicitation with lenders. Inap's non-US subsidiaries are not part of the company’s Chapter 11 cases.

Okay, that is not bad. Lowers interest, keeps the cash flow healthy, they continue to operate.

MikePT

Wasn't expecting this.

havoc

Any idea what providers will be affected?

WSS

@havoc said:
Any idea what providers will be affected?

I can't think of a single (heh) provider that only peers with InterNap.

CamoYoshi

Yeah any provider worth their salt will have INAP as one of their handful of "premium" peers. Alongside HE, L3 and the like... Still a bit spooky to see that sort of thing happen but at the same time glad they are taking it seriously and properly restructuring instead of just taking the bailout and leaving.

Francisco

Crazy that they couldn't make a profit given they removed most of the premium from their network to make it Cogent-tastic.

Francisco

wdmg

It’s a shame, at one point they were rather good. I guess times have changed.

SMARTHOST

@MikePT said:
Wasn't expecting this.

Really? Have you not been following their stock prices and financial reporting?
This was just a matter of "when", not "if"... ;-)

PureVoltage

@SMARTHOST said:

@MikePT said:
Wasn't expecting this.

Really? Have you not been following their stock prices and financial reporting?
This was just a matter of "when", not "if"... ;-)

This, haha.
They also from what I heard and know of the industry seemed to screw over a lot of their clients causing them to go under.

The typical get this discounted rate and months free you can fill it up by then and make big profits. So many companies do this and try and talk smaller companies into expanding way more than what they can really do and cause them to go under.

Their stocks been dumping for quite a while now.

WSS

@PureVoltage said:
They also from what I heard and know of the industry seemed to screw over a lot of their clients causing them to go under.

I guess 20 years later, I'm not under an NDA to any former employer (that no longer exists). Can confirm that they offered a compelling price for better-than-cogent transit, and the moment your 95th percentile is over guarantee/agreement, you get it right in the wallet.

MikePT

@SMARTHOST said:

@MikePT said:
Wasn't expecting this.

Really? Have you not been following their stock prices and financial reporting?
This was just a matter of "when", not "if"... ;-)

I haven't. :P

atomi

I think Dedipath have some of services in INAP's LA datacenter

qps

@atomi said:
I think Dedipath have some of services in INAP's LA datacenter

There have been multiple press releases recently about Dedipath and INAP, so yeah, I think you're right.