Edgio Inc (NASDAQ:EGIO) shares are trading lower by 80% to $1.23 Monday afternoon after the company voluntarily filed for Chapter 11 bankruptcy in Delaware to facilitate the sale of its business while continuing operations under new ownership.
Supported by its primary lender, Lynrock Lake Master Fund LP, Edgio entered into a $110 million credit bid with Lynrock to anchor the sale process, expected to conclude within 80 days. The company will continue delivering its key services, including web security and video streaming.
Edgio has meanwhile secured $15.6 million in debtor-in-possession financing to maintain operations and has filed motions to ensure employee and vendor payments during the process.