Cyxtera Technologies Inc, a data-center operator, has initiated the process of filing for U.S. bankruptcy protection in New Jersey. This strategic move, occurring two years post its public offering, arises from the company’s daunting struggle to alleviate its debt burden and confront a severe funding crunch.
Cyxtera specializes in offering co-location services, enabling businesses to securely house their proprietary servers and network apparatus within external data centers, including those managed by Cyxtera itself.
Since its listing on the Nasdaq in 2021, the shares of Cyxtera have plummeted by over 90%, currently standing at a meager $0.16 as of the latest closing.
In March, Cyxtera struck a deal with its lenders, securing an extension for its revolving credit facility amounting to $120.1 million. This agreement effectively postpones the maturity date to 2024.
the data-center operator runs over 60 data centers, and its assets and liabilities have been indicated to fall within the $1 billion to $10 billion range. Cyxtera commenced a business restructuring procedure in the month of May.
In Asia-Pacific, Cyxtera has data centers in Singapore, Tokyo and six data centers in India.
