Further complications arose in March 2023 when Edgio announced a restatement of three years of financial reporting due to accounting errors, reducing revenues for 2020, 2021, and 2022 by $6.2 million, $16.5 million, and $23.7 million, respectively. The financial restatement and delayed 2023 reporting triggered loan defaults with Lynrock Lake, contributing to the bankruptcy filing.
Creditors and Debtor-In-Possession Financing
Edgio has approximately 5,000 creditors, with Amazon Web Services being the largest unsecured creditor, holding $8.7 million in claims. Other major creditors include Verizon Sourcing LLC ($5.8 million) and Comcast Media Center. The company has secured $15.6 million in debtor-in-possession financing from Lynrock to support its operations during bankruptcy, pending court approval.
Edgio Filed for Chapter 11 : Future Prospects
The bankruptcy case is assigned to U.S. Bankruptcy Judge John T. Dorsey, and Edgio is represented by Russell C. Silberglied of Richards Layton & Finger PA. With over 800 employees and operations in more than 60 countries, Edgio aims to restructure and streamline its business under new ownership, potentially securing its future in the competitive digital content market.
