Global content delivery network provider Edgio (Nasdaq: EGIO) has voluntarily filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the District of Delaware. This strategic move aims to facilitate the sale of Edgio’s assets, allowing the company to continue operating under new ownership while securing its future in the fast-paced digital market. The filing comes as Edgio, formerly known as Limelight Networks, seeks to restructure and maximize value through a court-supervised bidding process.

Edgio has already entered into a stalking horse asset acquisition agreement with its principal lender, Lynrock Lake Master Fund LP, committing to acquire the company’s assets by offsetting $110 million of secured debt. CEO Todd Hinders expressed confidence in the process, stating that this flexibility will allow Edgio to continue delivering critical video streaming and web security solutions to its more than 935 global customers. The sale process is expected to be completed within 80 days, with the potential for a higher bid during the court-monitored process.

To maintain operations during the Chapter 11 proceedings, Edgio secured $15.6 million in debtor-in-possession financing from Lynrock, pending court approval. This funding will ensure Edgio continues to meet its obligations, including paying employees and key vendors. The company has also filed standard motions to ensure business continuity during this time.

Despite the challenges, Edgio remains committed to providing its innovative digital products and services to its global customer base, maintaining its position in the ever-evolving digital landscape.