Jenner & Block

Team Helps Internap Emerge Successfully from Bankruptcy

Jenner & Block represented data center provider Internap (INAP) as special finance and corporate counsel in INAP’s successful financial restructuring process and reorganization plan, confirmed on May 4, 2020 by the US Bankruptcy Court for the Southern District of New York. INAP emerged from Chapter 11 on May 11, 2020.  In connection with this process, Jenner & Block guided INAP through a new five-year $225 million term loan facility as well as a three-year $75 million exit facility, and in its debt-for-equity restructuring.  On March 16, 2020, INAP filed for relief under Chapter 11 of the Bankruptcy Code, with approximately $464 million of funded indebtedness.  The Chapter 11 proceeding was a “pre-packaged” plan, where the existing lenders agreed to convert their existing debt to new debt and equity of INAP.  As part of the plan, certain of the existing lenders agreed to provide DIP financing in the amount of $75 million to provide liquidity to the company during the bankruptcy proceeding and post-emergence.  The DIP financing was converted to a first priority exit facility of the company.  The existing $464 million of indebtedness was converted to a $225 million second-out term loan facility. All existing equity of INAP was terminated and the lenders converted their remaining claims to new equity of INAP. This transaction was vital to INAP as it was able to significantly strengthen its financial position by substantially reducing debt, extending maturities and enhancing liquidity. 
 
The Jenner & Block team was led by Partners Anna Meresidis and Thomas A. Monson.  Ms. Meresidis and Associates Young Woo (Ariel) Cho, Sharon K. Moraes and Sarah E. Stewart led the efforts on financing side, with contributions from Partners Geoffrey M. Davis, Michelle M. McAtee and Matthew J. Renaud.  Mr. Monson led the efforts on the corporate and securities side, with contributions from Partners Alexander J. May and Jason M. Casella and Associates Gina B. Lawrence and Kristen M. Iglesias.