Internap Corp fka INAPQ

[Bert_From_Accounting]

Chapter 11 Summary from Counsel:

Sharing this as FYI for anyone interested. This is nothing new or suggestive. Just informational and in laymens terms.

I will say that if I was a prominent firm like Milbank and deciding which cases to talk about on my public site to encourage future clientele, I think I would only want to talk about the successful ones.

I have been watching the docket on this thing and it is super active. Can't keep up. For the most part, it is just orders/authorizations for INAP to pay vendors like Milbank.

https://www.milbank.com/en/news/milbanks-leading-financial-restructuring-team-advises-debtors-in-chapter-11-cases.html

Internap Corporation: On March 16, 2020, Milbank filed chapter 11 bankruptcy protection petitions on behalf of Internap Corporation and certain affiliates (together, “INAP”) in the United States Bankruptcy Court for the Southern District of New York (“Bankruptcy Court”). Milbank has served as counsel to the global provider of premium data center infrastructure and cloud solutions since January 2020, when INAP approached the firm to help it navigate complex financial challenges. Stemming from market competition that resulted in sinking profits and a liquidity crisis, INAP’s balance sheet was insurmountably overleveraged, holding approximately $463.9 million of prepetition funded indebtedness and about $4 million cash on hand.

Prior to the filing in the Bankruptcy Court, and after INAP was unable to find a suitable buyer, the Milbank team successfully secured a Restructuring Support Agreement for an ad hoc group consisting of 77 percent of INAP’s prepetition term loan lenders, putting INAP on a path for success post-bankruptcy by deleveraging its balance sheet. The agreement backed a prepackaged reorganization chapter 11 plan which will equitize approximately $426.4 million of the company’s prepetition term loans, unimpair its general unsecured creditors, and allow current equity holders to obtain new equity in the reorganized company. Also pursuant to the agreement, the ad hoc group has already provided a $5 million bridge loan and will provide $70 million in debtor-in-possession funding. A May 4, 2020 combined hearing will determine the approval of INAP’s disclosure statement and prepacked plan.

The Milbank team included Financial Restructuring partners Dennis Dunne, Tyson Lomazow and Abhilash Raval, and associate Justin Cunningham.