Internap INAP: Second Bankruptcy Filing by INAP Since 2020

INAP has once again filed for bankruptcy. This week, the company voluntarily filed for Chapter 11 as part of its debt restructuring statement. The company stated that INAP has freely filed motions under Chapter 11 of the US Bankruptcy Code in the US Bankruptcy Court for the District of Delaware to carry out a quick and effective restructuring. This action will allow INAP to cut its debt and other specific obligations while boosting its liquidity to fuel investments in expanding its cloud business for the good of customers, staff, and other stakeholders. INAP expects the procedure to be completed within two to three months and guarantees "no disruption" to its existing cloud customers.

The business announced it would transition into a "standalone cloud business." Through reorganizing its finances, INAP has reduced its debt by more than 80 percent and significantly enhanced' its liquidity. In the past, INAP provided services in data centers totaling more than 1 million square feet spread across numerous locations. On its website, the business now only displays bare metal offerings from eight areas: Secaucus, New Jersey; Dallas, Texas; Santa Clara, California; Chicago, Illinois; Phoenix, Arizona; Amsterdam, the Netherlands; London, United Kingdom; and Singapore. It declared bankruptcy in March 2020, underwent restructuring, and emerged with Scioli, the CFO at the time, elevated to CEO.

Along with non-US subsidiaries like iWeb in Canada, INAP Japan was excluded from the 2020 bankruptcy. Since then, Leaseweb has absorbed iWeb. Unitas Global, a network service provider, purchased the company's network division, and in May 2022, the company signed a contract to do business with Unitas. It also sold nine facilities to Evocative in September 2022. According to the Chapter 11 petition, INAP owes over $127 million to Wilmington Trust, $7.7 million to Digital Realty, more than $700,000 to Evocative, and more than $300,000 to Unitas and Dell, respectively.

The company reportedly has around $20 million in liquid assets.