Only exit: A man wades through the Morris Canal Outlet in Jersey City as the sun sets on the lower Manhattan skyline of New York. Cyxtera is struggling to pay its debts and is facing a severe finance crunch. — AP
NEW YORK: Data centre operator Cyxtera Technologies Inc files for US bankruptcy protection in New Jersey, two years after the company went public, as it struggles to pay down debt and faces a severe funding crunch.
Miami, Florida-based Cyxtera is a provider of co-location services, which allow companies to keep their privately owned servers and networking equipment in a third-party data centre, such as the ones owned by Cyxtera.
In March, the company entered into an agreement with its lenders to extend its US$120.1mil (RM41.2mil) revolving credit facility and extend its maturity to 2024.
Cyxtera shares have dropped more than 90% since it listed on the Nasdaq in 2021, trading at 16 US cents (73 sen) as of last close. It had agreed to go public through a merger with a blank-check firm backed by shareholder activist Starboard Value LP in a deal valuing the combined entity at US$3.4bil (RM15.5bil).
The company, which currently runs more than 60 data centres, listed both assets and liabilities in the range of US$1bil (RM4.5bil) to US$10bil (RM45.7bil). It has more than 5,000 creditors and entered into a process of restructuring its business earlier in May.
It received US$50mil (RM228.8mil) last month and said in a statement on Sunday that it got an additional commitment of US$200mil (RM915.5mil) in debtor-in-possession financing from its lenders to keep itself afloat during the Chapter 11 process. — Reuters
