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CYXT may see a bounce news out : Secures Approval to Access Financing to Support Ongoing Operations
Continuing to Operate Unique Global Platform of Highly Interconnected Data Centers Without Interruption
MIAMI --(BUSINESS WIRE)-- Cyxtera (NASDAQ: CYXT), a global leader in data center colocation and interconnection services, today announced that it has received approvals from the U.S. Bankruptcy Court for the District of New Jersey for its “First Day” motions related to the Company’s voluntary Chapter 11 petitions filed on June 4, 2023 .
The Court granted interim approval to access up to $54 million of the $200 million in debtor-in-possession financing from certain of its term lenders. In addition, Cyxtera obtained interim and final approvals from the Court for other First Day motions that enable the Company to continue:
Paying all employee wages, salaries and benefits;
Paying vendors and suppliers in full for goods and services provided on or after the filing date of June 4, 2023 ; and
Operating its global platform of highly interconnected data centers normally, without interruption.
Nelson Fonseca , Cyxtera’s Chief Executive Officer, said, “These approvals ensure that we can continue meeting our business obligations and providing our customers with uninterrupted innovative services and the highest levels of support. As we continue building on our recent business momentum and high demand for our data center platform, we are concurrently moving forward on our path to pursue new growth opportunities. I thank our customers and business partners for their continued support and all of our employees for their unwavering focus on helping our customers around the world transform and scale their businesses.”
Additional information regarding the Company’s court-supervised process is available at www.CyxteraRestructuring.com. Court filings and other information related to the proceedings are available on a separate website administrated by the Company’s claims agent, KCC, at www.kccllc.net/cyxtera; by calling KCC toll-free at [phone], or [phone] for calls originating outside of the U.S. or Canada ; or by emailing KCC at [e-mail].
Kirkland & Ellis LLP is serving as legal counsel to Cyxtera , Guggenheim Securities, LLC is serving as financial advisor and AlixPartners, LLP is serving as restructuring advisor.