Data-center operator Cyxtera Technologies Inc. filed for bankruptcy protection in New Jersey on Sunday, two years after the company went public, as it struggles to pay down debt and faces a severe funding crunch, the Economic Times reported. Miami, Florida-based Cyxtera is a provider of co-location services, which allows companies to keep their privately-owned servers and networking equipment in a third-party data center, such as ones owned by Cyxtera. In March, the company entered into an agreement with its lenders to extend its $120.1 million revolving credit facility and extended its maturity to 2024. Cyxtera shares have dropped more than 90% since it listed on the Nasdaq in 2021, trading at $0.16 as of last close. It had agreed to go public through a merger with a blank-check firm backed by shareholder activist Starboard Value LP, in a deal valuing the combined entity at $3.4 billion. The company, which currently runs more than 60 data centers, listed both assets and liabilities in the range of $1 billion to $10 billion. It has more than 5,000 creditors and entered into a process of restructuring its business earlier in May. It received $50 million last month and said in a statement on Sunday it got an additional commitment of $200 million in debtor-in-possession financing from its lenders to keep itself afloat during the chapter 11 process.
