TechDogs-"Cyxtera Receives Court Approval For First Day Motions"

Data Management

Cyxtera Receives Court Approval For First Day Motions

By Business Wire

Business Wire
Overall Rating

Secures Approval to Access Financing to Support Ongoing Operations

Continuing to Operate Unique Global Platform of Highly Interconnected Data Centers Without Interruption

MIAMI--(BUSINESS WIRE)--$CYXT #colocation--Cyxtera (NASDAQ: CYXT), a global leader in data center colocation and interconnection services, today announced that it has received approvals from the U.S. Bankruptcy Court for the District of New Jersey for its “First Day” motions related to the Company’s voluntary Chapter 11 petitions filed on June 4, 2023.

The Court granted interim approval to access up to $54 million of the $200 million in debtor-in-possession financing from certain of its term lenders. In addition, Cyxtera obtained interim and final approvals from the Court for other First Day motions that enable the Company to continue:

  • Paying all employee wages, salaries and benefits;
  • Paying vendors and suppliers in full for goods and services provided on or after the filing date of June 4, 2023; and
  • Operating its global platform of highly interconnected data centers normally, without interruption.

Nelson Fonseca, Cyxtera’s Chief Executive Officer, said, “These approvals ensure that we can continue meeting our business obligations and providing our customers with uninterrupted innovative services and the highest levels of support. As we continue building on our recent business momentum and high demand for our data center platform, we are concurrently moving forward on our path to pursue new growth opportunities. I thank our customers and business partners for their continued support and all of our employees for their unwavering focus on helping our customers around the world transform and scale their businesses.”

Additional information regarding the Company’s court-supervised process is available at www.CyxteraRestructuring.com. Court filings and other information related to the proceedings are available on a separate website administrated by the Company’s claims agent, KCC, at www.kccllc.net/cyxtera; by calling KCC toll-free at (877) 726-6510, or (424) 236-7250 for calls originating outside of the U.S. or Canada; or by emailing KCC at cyxterainfo@kccllc.com.

Kirkland & Ellis LLP is serving as legal counsel to Cyxtera, Guggenheim Securities, LLC is serving as financial advisor and AlixPartners, LLP is serving as restructuring advisor.

About Cyxtera

Cyxtera is a global leader in colocation and interconnection services, with a footprint of more than 60 data centers in over 30 markets. With IT infrastructure becoming increasingly hybrid, complex, and distributed, Cyxtera continues to expand its portfolio beyond space and power to deliver more cloud-like and flexible infrastructure solutions across its global data center platform and robust partner ecosystem. Today, Cyxtera provides more than 2,300 enterprise and government customers with the technology solutions they need to scale faster, achieve financial goals, and gain a competitive advantage. For more information, please visit www.cyxtera.com.

Forward-Looking Statements

This press release includes “forward-looking statements” within the meaning of the federal securities laws. Because forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of Cyxtera’s control. Actual results and conditions (financial or otherwise) may differ materially from those indicated in the forward-looking statements. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results and conditions to differ materially from those indicated in the forward-looking statements, including, but not limited to, risks and uncertainties relating to Cyxtera’s Chapter 11 cases (the “Chapter 11 Case”), including, but not limited to, Cyxtera’s ability to obtain Bankruptcy Court approval with respect to motions in the Chapter 11 Case, the effects of the Chapter 11 Case on Cyxtera and on the interests of various creditors, stockholders and other constituents; Bankruptcy Court rulings in the Chapter 11 Case and the outcome of the Chapter 11 Case in general; the length of time the Company will operate under the Chapter 11 Case; risks associated with third-party motions in the Chapter 11 Case; the potential adverse effects of the Chapter 11 Case on the Company’s liquidity or results of operations and increased legal and other professional costs necessary to execute the reorganization; Cyxtera’s ability to finalize and enter into a debtor-in-possession financing facility on satisfactory terms, if at all, and to satisfy the conditions to which such financing is subject, which may not be satisfied for various reasons, including for reasons outside of Cyxtera’s control; uncertainty associated with evaluating and completing any strategic or financial alternative as well as Cyxtera’s ability to implement and realize any anticipated benefits associated with any alternative that may be pursued; the impact of any challenge by creditors or other parties to previously completed transactions; the consequences of the acceleration of the Company’s debt obligations; trading price and volatility of the Company’s Class A common stock and its ability to remain listed on the Nasdaq Stock Market; and any other statements regarding plans, objectives, expectations and intentions and other statements that are not historical facts. The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the “Risk Factors” disclosed in Cyxtera’s filings with the SEC from time to time. There may be additional risks that Cyxtera does not presently know or that it currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect Cyxtera’s expectations, plans or forecasts of future events and views as of the date of this press release. Accordingly, you should not place undue reliance upon any such forward-looking statements in this press release. Neither Cyxtera nor any of its affiliates assume any obligation to update this press release, except as required by law.


Contacts

Media Inquiries
Janice Clayton
press@cyxtera.com

Aaron Palash / Meaghan Repko / Aura Reinhard / Rose Temple
Joele Frank, Wilkinson Brimmer Katcher
(212) 355-4449

Investor Inquiries
Kwang Edeker
IR@cyxtera.com

First published on Wed, Jun 7, 2023

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