Edgio Seeks Fresh Start Through Bankruptcy Process

Edgio, Inc., a leading provider of digital solutions, has announced that it has voluntarily filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the District of Delaware. The company aims to facilitate a smooth and efficient sale process that will allow its business to continue operating under new ownership. Edgio has entered into a stalking horse asset purchase agreement with its primary lender, Lynrock Lake Master Fund LP, and is seeking the highest or best bid for its assets through a court-supervised sale process.

Navigating the Path to Renewal

Addressing Financial Challenges

Edgio's decision to file for Chapter 11 bankruptcy protection comes as the company faces financial challenges in the rapidly evolving digital landscape. The company has been exploring various options, including discussions with interested parties, to find the best solution for its business and stakeholders. By entering the Chapter 11 process, Edgio aims to restructure its operations and secure a path forward that will enable it to continue delivering its award-winning products and solutions to its global customer base.The company has secured .6 million in debtor-in-possession (DIP) financing from Lynrock, which is expected to ensure the continuity of its operations and the delivery of products to customers throughout the sale process and the Chapter 11 proceedings. This financing, along with the court-supervised sale process, is designed to provide Edgio with the necessary flexibility and resources to navigate the challenges it faces.

Preserving Customer Relationships

Edgio's commitment to its customers remains a top priority during this process. The company has filed standard "first day" motions in the Chapter 11 Cases, seeking court approval to continue supporting its operations and ensuring minimal disruption to its customers. These motions, if approved, will enable Edgio to continue paying employee wages and benefits, as well as make payments to critical vendors, ensuring the seamless delivery of its products and services.Edgio's CEO, Todd Hinders, expressed confidence in the company's ability to navigate this process, stating, "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."

Seeking the Highest or Best Bid

As part of the Chapter 11 process, Edgio has entered into a stalking horse asset purchase agreement with Lynrock, its primary lender. Under this agreement, Lynrock has agreed to acquire Edgio's assets through a credit bid in the amount of 0 million of the existing secured debt held by Lynrock.However, Edgio is committed to using the court-supervised sale process to seek the highest or otherwise best bid for its assets, including its individual business product offerings. The company has engaged in discussions with a number of interested parties prior to the commencement of the Chapter 11 Cases and is optimistic about the potential for a successful sale process.Edgio's award-winning products and solutions have been recognized for their innovation and solid performance, positioning the company 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, to ensure a timely resolution and the continued operation of the business under new ownership.

Navigating the Bankruptcy Process

The Chapter 11 filing and the subsequent sale process will be overseen by the United States Bankruptcy Court for the District of Delaware. Edgio has assembled a team of experienced legal, financial, and strategic advisors to guide it through the bankruptcy proceedings and ensure a smooth and efficient process.The company has also established a dedicated resource for stakeholders, including customers, vendors, and employees, to access information and address any questions or concerns. Stakeholders can visit the website of Edgio's claims agent, Omni Agent Solutions, or reach out via email or toll-free phone numbers for assistance.Edgio's commitment to transparency and open communication throughout the Chapter 11 process is a testament to its dedication to its stakeholders and its desire to navigate this challenging period with the utmost care and professionalism.