ConvergeOne Reaches Restructuring Deal, Nears Bankruptcy Filing
- Company may file for Chapter 11 bankruptcy in coming days
- IT company has been in talks with lenders to slash debt
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Cloud computing and networking provider ConvergeOne has reached a deal with a group of creditors to restructure its balance sheet and receive fresh equity as part of a potential bankruptcy filing, according to people with knowledge of the matter.
The company, which was rebranded as C1 in October, has been operating under a grace period from creditors as it negotiated a deal to slash its expensive debt, said the people, who asked not to be identified discussing a private matter. The company has been seeking support from its lenders and other key parties that would allow it to exit Chapter 11 quickly in what’s known as a pre-packaged filing, the people said.