Edgio Files For Bankruptcy, Stock Tanks 77%
(RTTNews) - Shares of Edgio, Inc. (EGIO) tanked 77% on Monday after the company filed for bankruptcy.
The company announced that it has voluntarily filed for chapter 11 relief in the United States Bankruptcy Court for the District of Delaware to effectuate one or more sale transactions that should allow for the continued operation of the Company's business under new ownership.
The company enters this process with the support of its primary lender, Lynrock Lake Master Fund LP, to facilitate a smooth and efficient completion of the Chapter 11 Cases.
To anchor the sale process, Edgio has entered into a stalking horse asset purchase agreement with Lynrock, which has agreed to acquire assets of the company through a credit bid in the amount of $110 million of the existing secured debt held by Lynrock.
Prior to the commencement of Chapter 11 Cases, the company engaged in discussions with a number of interested parties with respect to a potential sale of all or part of the Company's businesses and assets.
In response to such interest, the Company intends to use a Court-supervised sale process to seek the highest or otherwise best bid for its assets, including its valuable individual business product offerings
EGIO is currently trading at $1.3677, down $4.8023 or 77.8545%, on the Nasdaq.
