Showing posts with label Chapter 11. Show all posts
Showing posts with label Chapter 11. Show all posts

Sunday, June 17, 2018

Tintri teeters at edge on insolvency, less than 1 year after IPO

Less than one year after completing its IPO, Tintri (NASDAQ: TNTR), which specializes in enterprise cloud platforms, reported that it is currently in breach of certain covenants under its credit facilities and likely does not have sufficient liquidity to continue its operations beyond June 30, 2018.

The company said it continues to evaluate its strategic options, including a sale of the company.

Q1 revenue is expected to be approximately $22 million and GAAP net loss per share is expected to be approximately ($1.14) for its fiscal quarter ended on April 30, 2018.

The closing bid price of the company’s common stock on the Nasdaq Stock Market has been less than $1.00 per share since May 22, 2018.

Tintri warned that even if it able to secure a strategic transaction before the end of the month, there is a significant possibility that the company may file for bankruptcy protection, which could result in a complete loss of shareholders’ investment.

Tintri offers Lego-like Enterprise Cloud Amidst Fierce Competition


Tintri, a networking start-up from Silicon Valley, made its initial public offering (IPO) on June 30,2017 and its shares are now trading on NASDAQ under the symbol 'TNTR'. The IPO raised approximately $60 million for the Mountain View, California-based company – a lukewarm Wall Street response considering earlier speculation that the shares might debut in the range of $10.50 to $12.50. Many expected the IPO to occur at the start of last week and at the higher price range. It was not clear why the IPO was delayed by a few days, but the lower price must have caused consternation for early investors and employees. Post IPO, Tintri, which means 'lightning' in the Irish language, currently has a market capitalisation value of about $225 million.

Tintri was founded in 2008 by Kieran Hearty, who had previously led engineering at VMware, and Mark Grittier, who had previously worked on software engineering at Sun Microsystems. The first products were introduced nearly 3 years later in March 2011. In August 2015, Tintri raised a $125 million Series F funding round led by Silver Lake Craftwork and included existing investors Insight Venture Partners, Light speed Ventures, Menlo Ventures and NEA. In December 2016, Charles Giancarlo, the former CTO of Cisco Systems, joined the Tintri board.
Tintri prides itself of having developed an enterprise cloud platform with a 'Lego-like' design that allows for every storage action at the individual virtual machine level. The value proposition is simple: scale the enterprise cloud from terabytes of storage to multiple petabytes as efficiently as possible. The Tintri CONNECT web services architecture use the 'Lego' building-block approach predicated on REST APIs and VM and container level abstraction. The frameworks runs applications on resource pools that span VMware, Citrix,Microsoft and OpenStack. This supports a DevOps model, where resource can be spun up or torn down on-demand, including via automated bots or modern interfaces such as Slack or Amazon's Alexa. To deliver this, Tintri's platform integrates cloud management software, web services and a range of all-flash storage systems.

A key ingredient is a virtualisation-aware file system that allows an organisation to view, manage and analyse application performance and quality of service. In a sense, it enables a private version of a public cloud. Use cases include server virtualisation, virtual desktop infrastructure, or VDI, disaster recovery and data protection, and development operations, or DevOps. Tintri says it has an advantage because innovation in storage has lagged and lacked granular level operation at the VM and container level.

Monday, December 18, 2017

Avaya emerges from Chapter 11 after eliminating $3 billion in debt

Avaya Holdings Corp. emerged from Chapter 11 bankruptcy proceedings. The company is seeking to reestablish a listing on the NYSE with approximately 110 million shares outstanding.

Avaya said it remains focused on "mission-critical, real-time communication applications of the world’s most important operations." Its portfolio includes software and services for contact center and unified communications— offered on premises, in the cloud, or a hybrid.

“This is the beginning of an important new chapter for Avaya,” said Jim Chirico, Avaya’s president and CEO. “In less than a year since the commencement of our chapter 11 restructuring, Avaya has emerged as a publicly traded company with a significantly strengthened balance sheet. Overall, we reduced our prior debt load by approximately $3 billion, and we exit today with more than $300 million in cash on our balance sheet.  The reduction of our debt and certain other long-term obligations will also improve annual cash flow by approximately $300 million compared to fiscal 2016.”

“We have the flexibility we need to invest in the large and growing contact center and unified communications markets as we complete our transformation to a software, services and cloud solutions provider,” Chirico added. “With a new Board and leadership team firmly in place, Avaya is now well-positioned to execute on its growth plan and deliver the returns and value expected by our stakeholders.”

  • Avaya entered chapter 11 proceedings on 19-January-2017. 
  • In June, Extreme Networks announced a deal to acquire Avaya's networking business for approximately $100 million. 

Thursday, October 26, 2017

DragonWave acquired by Transform-X

DragonWave, which a global supplier of packet microwave radio systems for mobile and access networks and which is bases in Ottawa, Canada, has been acquired by Transform-X, a private equity firm based in Tucson, Arizona.  Financial terms were not disclosed.

DragonWave’s carrier-grade point-to-point packet microwave systems transmit broadband voice, video and data, enabling service providers, government agencies, enterprises and other organizations to meet their increasing bandwidth requirement. The principal application of DragonWave’s portfolio is wireless network backhaul, including for small cell networks. The new company will operate under the name of DragonWave-X.

In addition, DragonWave announced the appointment of Hans B. Amell as the company’s new Chief Executive Officer. Amell’s background includes leading major transformations in Global Industry leading companies such as Unisys, Dun and Bradstreet, AlliedSignal/Honeywell and Ericsson. He started his career as a management consultant at McKinsey.

"The DragonWave-X acquisition is a crucial part of Transform-X's strategic goal to acquire and integrate best-in-class 5G+ communications technologies, manufacturers and service companies that will compete and excel in the market for 5G+, small cell densification and RAN solutions to modern data demands." said Dan Hodges, Transform-X CEO.


Wednesday, February 15, 2017

XTERA Communications Acquired by H.I.G. Capital

H.I.G. Capital (“H.I.G.”), a leading global private equity investment firm with over €20 billion of equity capital under management, has acquired substantially all the assets of Xtera Communications, a supplier of sub-sea fiber optic solutions. Financial terms were not disclosed.

H.I.G. previously provided debtor-in-possession financing to the Xtera debtors in connection with the chapter 11 case.

Established in 1998 and based in the UK (Harold Wood, Essex) and the US (Allen, Texas), Xtera supplies un-repeatered and repeatered sub-sea systems, using high performance optical amplifiers to carry data. Under H.I.G.’s ownership, Xtera’s management and technical team will remain at the helm of the business, focused on successfully executing key existing customer contracts and expanding the business in the rapidly growing markets it serves with a clear roadmap of disruptive product launches.

Carl Harring, Managing Director at H.I.G. Capital commented: “We believe Xtera has considerable growth potential as an independent, well-funded business with a new ownership structure. Its world class IP protected technology is not only differentiated and superior to that of its competitors, but it is delivered to an impressive range of global clients at a cost-effective price point. We are excited to be working with this industry-leading team and our immediate focus will be to work with them to deliver and build on existing contracts and over the long-term, provide the financial support to enable the company to fully capitalise on its technology with a broader base of customers.”

Stuart Barnes, Founder of Xtera, added: “We are delighted to announce our new partnership with H.I.G. Capital, which has previously invested in the fiber-optics sector and has a proven understanding of how to grow specialist industrial suppliers into market-leading players. We share the same vision of strengthening Xtera’s footprint in the future.”

http://www.xtera.com/

Thursday, January 19, 2017

Avaya Files for Chapter 11

Citing a need to recapitalize the company, Avaya filed voluntary petitions under chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the Southern District of New York.

The company also announced a $725 million debtor-in-possession DIP financing facility underwritten by Citibank.

“We have conducted an extensive review of alternatives to address Avaya’s capital structure, and we believe pursuing a restructuring through chapter 11 is the best path forward at this time,” said Kevin Kennedy, Chief Executive Officer of Avaya.  “Reducing the Company’s current debt through the chapter 11 process will best position all of Avaya’s businesses for future success.”

“This is a critical step in our ongoing transformation to a successful software and services business. Avaya’s current capital structure is over 10 years old and was put in place to support our business model as a hardware-focused company, which has evolved significantly since that time.  Now, as a result of the terms of Avaya’s debt obligations and the upcoming debt maturities, we need to recapitalize the Company,” continued Mr. Kennedy.  “Our business is performing well, and we are confident that we can emerge from this process stronger than ever, as this path is a reflection of our debt structure, not the strength of our operations or business model.  Pursuing restructuring through chapter 11 will enable us to reduce Avaya’s debt and interest expense, while providing increased financial flexibility to further invest in innovation and growth to enhance our market-leading competitive position.  Most importantly, we are keenly focused on minimizing disruption to our customers, partners, and employees and do not expect to experience any material disruptions during the chapter 11 cases.”

Separately, Avaya reported Q4 2016 revuenu of $958 million, up $76 million compared to the prior quarter as demand improved for products and services, and decreased $50 million year-over-year, due to lower demand for unified communications hardware.  GAAP gross margin was 60.9% for the fourth quarter.  GAAP operating loss was $428 million, reflecting $542 million of impairment of goodwill and intangibles.  Non-GAAP operating income was $229 million which compares to $180 million for the prior quarter and $202 million for the fourth quarter of fiscal 2015.  For fiscal 2016, Avaya reported revenue of $3,702 million, down 9% compared to fiscal 2015, or down 8% in constant currency. GAAP gross margin for fiscal 2016 was 60.6%.

http://www.avaya.com/en/about-avaya/newsroom/

Sunday, December 18, 2016

Violin Memory Enters Chapter 11, Seeks Auction in January

Violin Memory, which offers flash memory arrays, filed for reorganization under Chapter 11 of the U.S. bankruptcy code.  The company said its will streamline its operations and balance sheet, while simultaneously pursuing a sale of its business. The company is seeking to hold an auction in early January for the business.

Violin Memory, founded in 2005, said its assets include annual recurring service revenue, a portfolio of 58 US Patents/24 pending, a single O/S for public, private and hybrid cloud environments, integrated hardware and software solutions, and a customer base that includes some of the largest enterprises in the world.

Kevin A. DeNuccio, Violin Memory's President and CEO stated: "We are taking this action, which should conclude by the end of January 2017, to bolster Violin's ability to serve the needs of its customers. Violin intends to continue to sell solutions to customers and prospects as well as service and

http://www.violin-memory.com

Friday, May 6, 2016

Centana Growth Partners Acquires Jumui for Mobile Authentication

Centana Growth Partners agreed to acquire Jumio, a start-up specializing in online and mobile credentials authentication company, following a competitive auction conducted under procedures approved by the United States Bankruptcy Court for the District of Delaware.

“The auction process was, as we hoped, competitive and successful,” said Stephen Stuut, Jumio’s CEO. “We are pleased to have achieved an outcome that we believe is not only a terrific opportunity for Jumio going forward, but supports the interests of all our various stakeholders. Centana is a great home for Jumio. With its outstanding financial services expertise and relationships, and the capital to fuel growth, Centana will provide Jumio with the foundation it needs to achieve scale. The transaction will be completed quickly and will enable Jumio to move past our legacy issues to become a stronger, more competitive company. Importantly, it will be seamless for both our customers and the dedicated team of employees who serve them.”

Jumio utilizes proprietary computer vision technology to reduce customer sign-up and checkout friction and verify credentials issued from over 120 countries in real-time web and mobile transactions. The company is headquartered in Palo Alto, California.

http://www.jumio.com

Friday, December 4, 2015

After 3 1/2 Years, LightSquared's Case Takes a Step Forward

The U.S. Federal Communications Commission (FCC) approved LightSquared’s Change of Control application, paving the path toward emergence from Chapter 11 as well as the installation of new leadership committed to collaborating with industry and government to spur economic growth by bringing the company’s mid-band spectrum to market.

The company described the FCC grant as a significant milestone.  LightSquared originally filed for bankruptcy protection in May 2012, and its reorganization plan was confirmed by Judge Shelley C. Chapman on March 26, 2015.

“We are very appreciative for today’s FCC action which will allow LightSquared to begin anew and recommit to work with all stakeholders to resolve important technical matters, identify necessary solutions, and remove regulatory uncertainty that the company has faced over the past three and-a-half years,” said Doug Smith, LightSquared chief executive officer. “We will emerge from restructuring with new owners representing some of the world’s top investors, and they have committed significant new capital to give the company the runway it needs to grow and operate the business. The new Board of Directors will be a group of highly-skilled and deeply experienced individuals, and I am excited to work alongside each of them to reach consensus and enable use of this mid-band spectrum.”

http://www.fcc.gov

  • LightSquared acquired a block of spectrum (1525-1559 MHz) in the L-Band and sought to build a nationwide 4G-LTE network integrated with satellite coverage but ran into objections of potential interference, financial and legal difficulties. 

Thursday, July 3, 2014

Gowex Suspended for Financial Irregularities

Shares of Gowex, a provider of free municipal Wi-Fi services based in Madrid, Spain, were suspended from trading following reports of financial irregularities.

Over the weekend, the founder and CEO of Gowex, Jenaro Garcia Martin, resigned.  Insiders said Garcia Martin indicated to the board that financial records had been manipulated for some time.  The company subsequently announced plans to file for bankruptcy protection.

Gowex has previously announced multiple partnerships with cities and public transport companies to deploy a free Wi-Fi service supported by its business model.

Public transport Wi-Fi projects included with Madrid & Barcelona City Tour, the Subte and the Metrobus of Buenos Aires, the intercity buses of Madrid Arriva de Blas, etc.

http://www.gowex.com

Wednesday, January 14, 2009

Nortel Files for Chapter 11


Marking a significant chapter in telecommunications history, 113-year old Nortel Networks filed for Chapter 11 bankruptcy protection in the U.S. and under the Companies' Creditors Arrangement Act ("CCAA") in Canada. Nortel said the filing will enable it to deal with its cost and debt burden, to restructure its operations and to narrow its strategic focus in an effective and timely manner.

Nortel said normal day-to-day operations would continue without interruption. To ensure its supply chain, Nortel has made a special arrangement with Flextronics by which Nortel agreed to purchase US$120 million of existing inventory by July 1, 2009 and to make quarterly purchases of other inventory and to terms relating to payment and pricing..

"Nortel must be put on a sound financial footing once and for all," said Nortel President and CEO Mike Zafirovski. "These actions are imperative so that Nortel can build on its core strengths and become the highly focused and financially sound leader in the communications industry that its people, technology and customer relationships show it ought to be. I am confident that the actions we're announcing today will be the fastest, most effective means to translate our improved operational efficiency, double-digit productivity, focused R&D and technology leadership into long-term success. I want to reaffirm Nortel's dedication to delivering world-class solutions and services to customers." According to industry reports, Nortel currently has about $2.4 billion in cash, a burn rate of $100 million per month and a heavy debt load of $4.5 billion. 
http://www.nortel.com 14-Jan-09
  • In November, citing a worsening of economic conditions, Nortel confirmed plans for further job cuts. Revenue in the third quarter of $2.32 billion decreased 14 percent year over year and down 1 percent on a year-to-date basis. The decline compared to the year ago quarter resulted from a challenging economic environment, competitive pressures and reduced spending by key carrier customers. Plans called for the reduction of approximately 1,300 positions, with about 25 percent of the net reduction taking place in 2008 and the remainder in 2009. This is expected to result in annual gross savings of approximately $190 million, with total charges to earnings and cash outlays of approximately $130 million. In addition to deeper cuts in spending, the company is considering possible sales of its real estate holdings.
  • Effective January 1, Nortel adopted a vertically integrated business unit structure. This includes one business unit focused on Enterprise customers and two business units focused on Service Providers: Carrier Networks (consisting of wireless and carrier value-added activities), led by Richard Lowe; and Metro Ethernet Networks, led by Philippe Morin. A dedicated global carrier sales organization will support both business units, led by Darryl Edwards.
  • There was no update at this time on Nortel's review of the potential divestiture of the MEN business.
  • In 2000, the company reached a peak annual revenue rate of $28 billion. At the point, it employed 93,000 and boasted a market capitalization of nearly $250 billion, accounting for one-third the value of the entire Toronto Stock Exchange. Following the bursting of the dot-com bubble, Nortel became embroiled in an accounting fraud that led to prosecution of its key executives.
  • Founded in 1895, Northern Electric and Manufacturing traces its roots back through Bell Canada to Alexander Graham Bell.

See also