Edgio Inc., a digital content delivery platform formerly known as Limelight Networks, filed for Chapter 11 bankruptcy protection on Monday, listing $379 million in assets and $369 million in liabilities. The company plans to sell its assets to its primary lender, Lynrock Lake Master Fund LP, through a stalking horse agreement.
Lynrock’s Stalking Horse Bid and Debt Acquisition
Lynrock Lake agreed to acquire Edgio’s assets via a $110 million credit bid, which will cancel Edgio’s $94.4 million secured debt held by Lynrock in exchange for ownership of the company. The deal includes Edgio’s applications and security suite, which offers AI-driven protection for websites, and its Uplynk streaming platform, which serves major media, sports, and cable clients.
Edgio Filed for Chapter 11 : Compliance Challenges and Financial Struggles
Edgio has faced significant compliance issues since 2022, hampering its ability to realize its business potential. CEO Todd Hinders noted that liability management exercises beginning in early 2023 exacerbated the company’s struggles. Edgio’s current form resulted from a 2022 merger between Limelight Networks and Edgecast, but the combination failed to meet expectations.
