Xtera Communications and seven affiliated Debtors filed for Chapter 11 protection with the U.S. Bankruptcy Court in the District of Delaware, lead case number 16-12577. The Company, which sells telecommunications-related optical transport solutions, is represented by Stuart Brown of DLA Piper.
According to documents filed with the Court, “Over the course of the past nine months, the Debtors have experienced significant liquidity issues that have hindered their ability to make payments in the ordinary course of business. Revenues have declined in part due to the expiration of certain key contracts, revised terms on certain renewed contracts that are less favorable for the Debtors than prior contracts.”
In addition, “The Debtors do not have sufficient liquidity to continue operating outside of bankruptcy, and the pursuit of a sale transaction during these chapter 11 cases presents the best available option to maximize value for the Debtors’ estates.”
Read more telecom bankruptcy news.
The post Xtera Communications Chapter 11 Petition Filed appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.