June 4 (Reuters) - Data-center operator Cyxtera Technologies Inc filed for U.S. 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.
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.
The company operates across 30 markets. It said that its subsidiaries in Germany, Singapore, and the United Kingdom are not included in the court-supervised process.
Cyxtera said it intends to pay employee wages, salaries, and benefits without interruption.
(Reporting by Mrinmay Dey in Bengaluru; Editing by Nivedita Bhattacharjee)
((Mrinmay.Dey@thomsonreuters.com;))
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