Cloud Provider Internap Gets Debt-for-Equity Bankruptcy Plan OK

Internap Holding won court approval of a restructuring plan that converts the cloud computing service provider’s $128 million of secured debt into new common stock that will be issued to creditors.

BlackRock Capital Investment Advisors, LLC, Carlyle Investment Management, LLC, and other creditors, which had issued secured loans, will seize the newly issued equity, under the reorganization plan approved Monday by Judge Craig Goldblatt of the US Bankruptcy Court for the District of Delaware.

The plan also provides the company, which does business as Inap, with $30 million in exit financing, according to court filings.

The Norcross, Ga.-based company previously ...