Edgio, Inc. Launches Strategic Financial Restructuring to Facilitate Sale and Strengthen Operations
Edgio, Inc. (Nasdaq: EGIO) has voluntarily filed for Chapter 11 bankruptcy to facilitate a sale of its assets and strengthen operations. The company has entered into a stalking horse asset purchase agreement with its primary lender, Lynrock Lake Master Fund LP, which has agreed to acquire assets through a $110 million credit bid. Edgio aims to complete the sale process in approximately 80 days.
The company has secured $15.6 million in debtor-in-possession financing from Lynrock to ensure continuity of operations during the process. Edgio plans to continue delivering its products to over 935 global customers throughout the sale process and Chapter 11 proceedings. The company's key offerings include the Edgio Applications and Security Suite, Edgio Uplynk Platform, and Edgio Delivery network.
Edgio, Inc. (Nasdaq: EGIO) ha presentato volontariamente istanza di fallimento ai sensi del Capitolo 11 per facilitare la vendita dei propri beni e rafforzare le operazioni. L'azienda ha firmato un accordo di acquisto di beni con garanzia con il suo principale creditore, Lynrock Lake Master Fund LP, che ha accettato di acquisire beni tramite un offerta di credito di 110 milioni di dollari. Edgio mira a completare il processo di vendita in circa 80 giorni.
L'azienda ha ottenuto 15,6 milioni di dollari in finanziamenti per debitori in possesso da Lynrock per garantire la continuità delle operazioni durante il processo. Edgio intende continuare a fornire i propri prodotti a oltre 935 clienti globali durante il processo di vendita e le procedure del Capitolo 11. Le principali offerte dell'azienda includono la Edgio Applications and Security Suite, la piattaforma Edgio Uplynk e la rete di consegna Edgio.
Edgio, Inc. (Nasdaq: EGIO) ha presentado voluntariamente una solicitud de quiebra bajo el Capítulo 11 para facilitar la venta de sus activos y fortalecer sus operaciones. La empresa ha firmado un acuerdo de compra de activos con un ofertante de garantía con su principal prestamista, Lynrock Lake Master Fund LP, que ha acordado adquirir activos a través de una oferta de crédito de 110 millones de dólares. Edgio tiene la intención de completar el proceso de venta en aproximadamente 80 días.
La compañía ha asegurado 15,6 millones de dólares en financiamiento como deudor en posesión de Lynrock para garantizar la continuidad de las operaciones durante el proceso. Edgio planea continuar entregando sus productos a más de 935 clientes a nivel global a lo largo del proceso de venta y los procedimientos del Capítulo 11. Las ofertas clave de la empresa incluyen la Edgio Applications and Security Suite, la plataforma Edgio Uplynk y la red de entrega Edgio.
Edgio, Inc. (Nasdaq: EGIO)는 자산 매각을 촉진하고 운영을 강화하기 위해 자발적으로 11장 파산을 신청했습니다. 회사는 주요 대출자인 Lynrock Lake Master Fund LP와 스토킹 호스 자산 구매 협약을 체결했으며, 이들은 1억 1천만 달러 신용 입찰을 통해 자산을 인수하기로 동의했습니다. Edgio는 약 80일 이내에 판매 과정을 완료할 계획입니다.
회사는 이 과정에서 운영의 연속성을 보장하기 위해 Lynrock으로부터 1천560만 달러의 채무자 보유 자금을 확보했습니다. Edgio는 판매 과정과 11장 절차 전반에 걸쳐 935명의 글로벌 고객에게 제품을 계속 제공할 계획입니다. 회사의 주요 제품에는 Edgio Applications and Security Suite, Edgio Uplynk 플랫폼 및 Edgio Delivery 네트워크가 포함됩니다.
Edgio, Inc. (Nasdaq: EGIO) a déposé volontairement une demande de faillite selon le Chapitre 11 pour faciliter la vente de ses actifs et renforcer ses opérations. La société a conclu un accord d'achat d'actifs avec son créancier principal, Lynrock Lake Master Fund LP, qui a accepté d'acquérir des actifs par le biais d'une offre de crédit de 110 millions de dollars. Edgio vise à compléter le processus de vente dans environ 80 jours.
L'entreprise a sécurisé 15,6 millions de dollars de financement en débiteur en possession de Lynrock pour assurer la continuité des opérations durant le processus. Edgio prévoit de continuer à livrer ses produits à plus de 935 clients dans le monde tout au long du processus de vente et des procédures du Chapitre 11. Les principaux produits de l'entreprise comprennent la Edgio Applications and Security Suite, la plateforme Edgio Uplynk et le réseau de livraison Edgio.
Edgio, Inc. (Nasdaq: EGIO) hat freiwillig einen Antrag auf Insolvenz gemäß Kapitel 11 gestellt, um den Verkauf seiner Vermögenswerte zu erleichtern und die Betriebsabläufe zu stärken. Das Unternehmen hat mit seinem Hauptgläubiger, dem Lynrock Lake Master Fund LP, eine Stalking-Horse-Vereinbarung über den Erwerb von Vermögenswerten unterzeichnet, in deren Rahmen eine Kreditgebotsumme von 110 Millionen Dollar vereinbart wurde. Edgio plant, den Verkaufsprozess in etwa 80 Tagen abzuschließen.
Das Unternehmen hat von Lynrock 15,6 Millionen Dollar an Finanzierungen für Schuldner in Eigenverwaltung gesichert, um die Kontinuität der Abläufe während des Prozesses zu gewährleisten. Edgio beabsichtigt, während des Verkaufsprozesses und der Kapitel-11-Verfahren weiterhin Produkte an über 935 globale Kunden zu liefern. Zu den Hauptangeboten des Unternehmens gehören die Edgio Applications and Security Suite, die Edgio Uplynk-Plattform und das Edgio-Delivery-Netzwerk.
- Secured $15.6 million in debtor-in-possession financing to ensure operational continuity
- Entered into a stalking horse asset purchase agreement with Lynrock Lake Master Fund LP for $110 million
- Aims to complete the sale process in approximately 80 days
- Maintains a customer base of over 935 global clients
- Filed for Chapter 11 bankruptcy protection
- Seeking to sell all or part of the company's businesses and assets
- Potential change in ownership and company structure
Insights
Edgio's voluntary filing for Chapter 11 bankruptcy and the proposed sale of its assets represent a significant financial restructuring with major implications for investors. The
The
The Chapter 11 filing provides Edgio with important legal protections, including an automatic stay on creditor actions. The stalking horse agreement with Lynrock sets a floor price for the company's assets, but the court-supervised auction process could potentially attract higher bids, benefiting creditors.
Key legal aspects to monitor include:
- Court approval of the DIP financing and "first day" motions
- Potential objections from unsecured creditors or shareholders
- The bidding procedures and timeline for the asset sale
While the process aims to preserve business continuity, there's a risk of contract rejections or renegotiations that could impact Edgio's relationships with customers and vendors.
Edgio's restructuring highlights the challenges in the competitive edge computing and content delivery network (CDN) market. Despite having a diverse product portfolio including security, streaming and delivery solutions, the company has struggled to achieve profitability in a sector dominated by larger players.
The potential sale of Edgio's assets could lead to:
- Consolidation in the CDN and edge computing market
- Opportunities for competitors to acquire valuable technology and customer relationships
- Potential disruption for Edgio's 935 global customers, who may seek alternative providers
The outcome of this process will be closely watched by industry players and could reshape the competitive landscape in the CDN and edge computing sectors.
Enters into Stalking Horse Asset Purchase Agreement in Connection with Contemplated In-Court Sale Process
Files Voluntary Petitions for Chapter 11 Relief to Effectuate a Transaction
Committed to Continue Delivering with Excellence for Partners and Customers
The Company enters this process with the support of its primary lender, Lynrock Lake Master Fund LP (“Lynrock”), to facilitate a smooth and efficient completion of the Chapter 11 Cases. 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
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Edgio Applications and Security Suite
- Securing high performance website and applications using AI for blue-chip customers globally
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Edgio Uplynk Platform
- Managed SaaS platform for streaming operations for the largest media, sports, and cable brands
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Edgio Delivery
- Leading edge network purpose-built for enterprises globally
Edgio’s award winning products and solutions have been recognized for their innovation and solid performance and are positioned to contribute to the rapidly evolving digital landscape. The Company is targeting the sale process to be completed in approximately 80 days, if not 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,” said Todd Hinders, Chief Executive Officer, Edgio.
Edgio has also entered into an agreement to receive approximately
These motions, upon approval, will help facilitate the continued payment of employee wages and benefits, enable payments to critical vendors and other relief measures customary in these circumstances.
Additional information is available through the Company’s claims agent, Omni Agent Solutions, at https://omniagentsolutions.com/Edgio. Stakeholders with questions can email EdgioInquiries@OmniAgnt.com or call 866-989-3041 (
Forward-Looking Statements Disclaimer
This press release contains “forward-looking statements” within the meaning of the federal securities laws. A reader can identify forward-looking statements because they are not limited to historical fact or they use words such as “expects,” “estimates,” “intends,” and similar expressions that concern the Company's strategy, plans, intentions or beliefs about future occurrences or results, including without limitation, statements regarding the Company's current expectations and intentions with respect to the filing of its Chapter 11 Cases and the asset purchase agreement with Lynrock. It is very difficult to predict the effect of known factors, and the Company cannot anticipate all factors that could affect actual results that may be important to an investor. All forward-looking information should be evaluated in the context of these risks, uncertainties and other factors, including: risks attendant to the bankruptcy process, including the Company’s ability to obtain court approval from the Court with respect to motions or other requests made to the Court throughout the course of the chapter 11 cases; the Company Parties’ ability to negotiate and confirm a sale of its assets under Section 363 of the Chapter 11 of the
Advisors
Milbank LLP and Richards, Layton & Finger are serving as legal advisors, Riveron is serving as financial restructuring advisor, TD Securities (
About Edgio, Inc.
Edgio (NASDAQ: EGIO) helps companies deliver online experiences and content faster, safer, and with more control. Our developer-friendly, globally scaled edge network, combined with our fully integrated application and media solutions, provide a single platform for the delivery of high-performing, secure web properties and streaming content. Through this fully integrated platform and end-to-end edge services, companies can deliver content quicker and more securely, thus boosting overall revenue and business value. To learn more, visit edg.io and follow us on Twitter, LinkedIn and Facebook.
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Media:
Edgio
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Source: Edgio, Inc.
FAQ
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