Data Firm Inap Eyes Handing Lenders Control in Second Bankruptcy

Internap Holding, a data firm doing business as Inap, is preparing to file for bankruptcy a second time and give lenders control of the company.

(Bloomberg) — Internap Holding, a data firm doing business as Inap, is preparing to file for bankruptcy a second time and give lenders control of the company.

The company has reached an agreement with lenders to repay $35 million of an existing term loan, swap the rest of the debt for stock and borrow a fresh $30 million to fund the business going forward, according to people familiar with the matter.

The deal would be carried out through a Chapter 11 filing, said the people, who asked not to be named because the matter is private. New money from the transaction will be used to invest in the business, one of the people said.

A representative for Inap declined to comment.

Inap went bankrupt in March of 2020 as prices for data-center services declined and the company struggled with stiff competition from bigger peers. It emerged two months later with a new $225 million term loan and $75 million exit facility, according to a statement at the time.

The company has since slimmed its operations. It sold a business unit to Unitas Global in early 2022 and subsequently most of its data centers to Evocative later in the year, according to a statement.

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