Internap’s Chapter 11 plan of reorganization effective as of July 31

By Sarah Lizee

Olympia, Wash., Aug. 1 – Internap Holding LLC’s Chapter 11 plan went into effect on Monday, according to a notice filed with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, the debtors filed their Chapter 11 cases to deleverage their balance sheet and continue as a going concern.

The plan, which was confirmed on July 17, contemplates that the holders of second-out term loans will convert all of their loans into equity, eliminating $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.

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.

© 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.