Cyxtera Technologies
The business, the turning points, and the decisions behind them.
01 / WHAT IT BUILT
What the company did
Cyxtera Technologies was a Miami-based global provider of data center colocation and interconnection services. It operated a platform of more than 60 highly interconnected data centers serving over 2,300 enterprises, service providers and government agencies worldwide. The company went public on Nasdaq (CYXT) in 2021 through a SPAC merger with Starboard Value Acquisition Corp., which valued it at $3.4 billion.
02 / Cyxtera Technologies FAILURE REASONS
Failure factors supported by the current evidence
Data Center Frontier (5 Jun 2023), reporting the 4 Jun 2023 bankruptcy restructuring, states Cyxtera had been trying for months to find a buyer or cut its debt; the sale/financing effort was complicated by its debt load and higher rates that raised borrowing costs and its path to profitability, with SEC filings saying it did not expect positive net income until 2030.
The article states Cyxtera had been working for months to find a buyer or reduce its debt load.
Higher interest rates boosted borrowing costs and complicated the path to profitability.
SEC filings cited in the article said the company did not expect positive net income until 2030.
03 / EVENT HISTORY
Events in the structured record
- Asset restructuring
Cyxtera 8-K dated 5 Jun 2023: company and subsidiaries filed voluntary bankruptcy restructuring cases on 4 Jun 2023 in the District of New Jersey; DIP financing of up to $200m sought.
04 / CONTEMPORARY REBUILD ASSESSMENT
Difficulty of rebuilding this project today
Material for this section is being gathered and checked. It will appear here once ready.
Overall assessment: Not completed
05 / CAUSAL CHAIN
How the factors connect
- 01
After months of seeking a buyer and struggling to pay down debt, Cyxtera entered a Restructuring Support Agreement with its lenders in May 2023.
- 02
On June 4, 2023, the company filed pre-arranged Chapter 11 petitions in the U.S. Bankruptcy Court for the District of New Jersey, listing assets and liabilities of $1 billion to $10 billion and more than 5,000 creditors, with a $200 million financing commitment to keep operating.
- 03
On November 17, 2023, the court confirmed a reorganization plan including the sale of substantially all assets to Phoenix Data Center Holdings, an affiliate of Brookfield Infrastructure Partners, for $775 million.
- 04
The sale closed and Cyxtera emerged from bankruptcy on January 12, 2024.
- 05
For 2022, Cyxtera reported a net loss of $355.1 million.