Internap (INAP) last Friday announced that it has taken an important step in the Company's evolution to a stand-alone cloud business by restructuring its finances, in collaboration with its lenders, establishing a strong foundation for growth by reducing debt by more than 80% and significantly enhancing liquidity.
INAP is proud to take this final step in its transformation to become a better, faster cloud business, with a strong emphasis on its bare metal platform, which is well positioned to compete and win in the marketplace. In preparation for this milestone, over the past three years, INAP has worked diligently to streamline its business via numerous strategic initiatives, including rationalizing certain locations and services, as well as divesting non-core and non-cloud lines of business. To support this next phase, INAP will receive a substantial capital infusion from its existing lenders to modernize its server fleet and network infrastructure, increase automation, enhance product offerings and improve customer experience.
To effectuate a swift and efficient restructuring, INAP has voluntarily filed petitions under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware. This action will enable INAP to reduce debt and certain other obligations, while also enhancing liquidity to drive investment in the growth of its cloud business, for the benefit of its customers, employees and other stakeholders. The Company expects to complete the process within the next 2-3 months, with no disruption to its existing cloud customers, emerging fully positioned for growth.
Michael Sicoli, President and Chief Executive Officer
With a balance sheet that is stronger than ever, INAP is ready to go on offense. Customers can continue to rely on us as they always have while we complete our recapitalization process and take comfort that this action will enable us to invest in enhancing every aspect of our service offerings, making us the right choice today, tomorrow and into the future. We appreciate the strong support of our investors and their belief in this business, especially its potential for growth.
