Incentra files Chapter 11 bankruptcy; group of investment funds agrees to buy assets

By Caroline Salls

Pittsburgh, Feb. 4 - Incentra Solutions, Inc. filed for Chapter 11 bankruptcy Wednesday in the U.S. Bankruptcy Court for the District of Delaware, and a group of investment funds managed by Valens Capital Management, LLC and Laurus Capital Management, LLC have agreed to purchase the company's assets, according to a company news release.

Incentra said this process will significantly improve its balance sheet and liquidity.

The company said it has secured the continued availability of its revolving credit facility as a source of debtor-in-possession financing, and these additional funds, along with the company's continuing cash collections, should provide sufficient resources to meet Incentra's ongoing obligations.

The DIP financing terms had not been filed as of late Wednesday evening.

"In today's economic conditions, we are pleased to have achieved such strong support for a sale of the business that is beneficial to our employees, customers, and partners by dramatically improving our balance sheet, eliminating some debt service obligations, and enabling continued investment in our services and future growth," chairman and chief executive officer Thomas P. Sweeney said in the release.

"This process will give Incentra a strong balance sheet, and allow us to take advantage of opportunities in the current economic environment while continuing to provide exceptional products and services to our customers."

According to court documents, Incentra has $92.49 million in assets and $80.3 million in debt.

The company's largest unsecured creditors include:

• ComStor, Tarrytown, N.Y., with a $2.5 million trade claim;

• Synnex, Fremont, Calif., with a $1.48 million trade claim; and

• Data Domain, Inc., Santa Clara, Calif., with a $1.25 million trade claim.

Incentra said it continued its record growth in 2008 with revenues up 46% to $212 million over 2007.

Based in Boulder, Colo., Incentra is a data management company focused on the broadcasting and information technology sector. Its Chapter 11 case number is 09-10370.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.