Initiates Pre-Arranged Chapter 11 Process with Substantial Support from Lenders to Facilitate Comprehensive Balance Sheet Restructuring as the Company Executes Growth Strategy
Obtains Commitment for $200 Million in New Financing to Support Ongoing Operations and Continue Meeting Customer Demand for Global Data Center Platform
Cyxtera CYXT, a global leader in data center colocation and interconnection services, today announced that, pursuant to the previously disclosed Restructuring Support Agreement (“RSA”) it reached with certain of its lenders holding over two-thirds of its outstanding term loan, the Company and certain of its subsidiaries have initiated a pre-arranged court-supervised process under Chapter 11 of the United States Bankruptcy Code in the U.S. Bankruptcy Court for the District of New Jersey. Cyxtera expects to use the Chapter 11 process to strengthen the Company’s financial position, meaningfully deleverage its balance sheet and facilitate the business’s long-term success.
Cyxtera is continuing to operate its unique global platform of highly interconnected data centers normally and without interruption. Customers also continue to have access to their Cyxtera data center sites and equipment as usual. In addition, Cyxtera’s unwavering focus on providing high-quality services that help its customers around the world transform and scale their businesses remains the same.
Nelson Fonseca, Cyxtera’s Chief Executive Officer, said, “We have thoroughly evaluated options to enhance value for the Company and our stakeholders. Together with our Lenders, we determined that initiating this process is the best path forward for Cyxtera and our stakeholders as we pursue new opportunities for growth. We appreciate the significant support from our Lenders, which will enable us to move through this process as quickly as possible. We are confident these steps will enable us to position our business for the long term as we continue serving our customers…