Violin Memory filed for Chapter 11 protection with the U.S. Bankruptcy Court in the District of Delaware, case number 16-12782. The Company, which develops and supplies network infrastructure data storage systems, is represented by Scott D. Cousins and Justin R. Alberto of Bayard.
According to documents filed with the Court, “Beginning in 2014, competitors released software products with de-duplication and compression functionality that mooted certain Violin performance advantages for many customers, and adversely affected Violin’s sales. In response, Violin launched software with de-duplication and compression in February 2015, as well as many other data management features, but the software experienced performance challenges and sales suffered further declines.”
Concurrent with its Chapter 11 petition, the Company also filed a motion for authority to sell substantially all of its assets. The Company notes, “By this Motion, the Debtor seeks to effectuate a section 363 sale process and close a sale transaction as soon as possible but in no event later than January 23, 2017….Moreover, the Debtor cannot afford a longer process. The Debtor has minimal cash remaining and will not generate sufficient cash flow during this case to support a longer process.”
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