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Internap files Chapter 11 plan, seeks July 17 confirmation hearing
By Sarah Lizee
Olympia, Wash., May 4 – Internap Holding LLC filed a Chapter 11 plan and disclosure statement with the U.S. Bankruptcy Court for the District of Delaware.
The debtors filed their Chapter 11 cases to deleverage their balance sheet and continue as a going concern.
The plan contemplates that the holders of second-out term loans will convert all of their loans into equity, eliminating about $127.8 million of secured debt from the company’s balance sheet.
In addition, some of the holders of second-out term loans have agreed to provide the debtors with an exit facility in an amount up to $30 million on the effective date of the plan.
Holders of about 67% of the second-out term loans in dollar amount and more than 60% in number have executed a restructuring support agreement in which they have agreed to support the plan.
In addition to the debt-for-equity exchange, other key terms of the plan include full payment of all administrative and priority claims, if any, and the claims of certain go-forward critical trade vendors.
Other unsecured creditors will not receive a distribution under the plan.
Existing equity will be canceled.
Intercompany claims will be either reinstated or canceled.
Holders of intercompany interests will receive nothing.
The second-out term loan and go-forward vendor classes are the only ones entitled to vote on the plan. Internap set the voting deadline for 4 p.m. ET on July 7.
The company is hoping for a July 17 hearing on confirmation of the plan.
INAP is an Atlanta-based provider of IT Infrastructure solutions. The company filed its second Chapter 11 bankruptcy on April 28 under case number 23-10529.
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