Data center colocation provider Cyxtera files for bankruptcy

Colocation provider Cyxtera Technologies has filed for Chapter 11 bankruptcy after spending the last few months trying to find a buyer or reduce its debt load. The company will now attempt to restructure through bankruptcy, or perhaps a suitor will come along to buy out the company.

“Cyxtera expects to use the Chapter 11 process to strengthen the Company’s financial position, meaningfully deleverage its balance sheet and facilitate the business’s long-term success,” the company said in a statement.

Cyxtera is not exactly a small fry. It reported $746 million in business last year although due to high operating expenses still lost money. It has 60 locations around the world and the more than 2,300 customers. The company was formed in 2016 when a team of investors bought out the data center business of CenturyLink for $2.15 billion.

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Source:: Network World – Data Center