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Data centre operator Cyxtera files for bankruptcy, two years after going public

Written by Wed 7 Jun 2023

Cyxtera Building Logo

Cyxtera Technologies has filed for bankruptcy protection two years after the company went public.

The colocated data centre operator is reportedly struggling to pay down debt and faces a severe funding crunch.

The US Bankruptcy Court for the District of New Jersey approved the company’s ‘First Day’ motions related to its voluntary Chapter 11 petitions filed on 4 June 2023.

“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,” said Nelson Fonseca, Cyxtera’s Chief Executive Officer.

Cyxtera listed both assets and liabilities in the range of $1 billion to $10 billion, plus more than 5,000 creditors.

The Court granted interim approval of up to $54 million out of $200 million in financing. This will allow the company to pay all employee wages, vendors’ goods and services, and operating its platform of more than 60 data centres.

However, Cyxtera’s subsidiaries in Germany, Singapore, and the United Kingdom are not included in the court-supervised process.

“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,” added Fonseca.

In March, the company entered into an agreement with its lenders to extend its $120.1 million revolving credit facility and extended its maturity to 2024.

Fonseca thanked their customers and business partners for their continued support, as well as Cyxtera’s employees for their ‘unwavering focus’ on helping customers.

Cyxtera’s shares dropped more than 90% since it was publicly listed on the Nasdaq in 2021.

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Written by Wed 7 Jun 2023

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