💥New Chapter 11 Bankruptcy - Edgio Inc. ($EGIO)💥

Apollo-owned content distribution network files BK after legal hiccup; intends to sell.

On September 9, 2024, Edgio Inc. ($EGIO) and six affiliates (collectively, the “debtors”) filed chapter 11 cases in the District of Delaware (Judge Owens). 

The lawyers in our midst — especially you litigators — may be familiar with the debtors because they’re the subjects of the “white squire” litigation in Delaware Chancery Court. Apparently there’s all kinds of drama over Apollo Global Management (“Apollo”) and its 35% management stake. We hadn’t heard of it (not our circus) but here’s Davis Polk & Wardwell LLP with observations so erudite, we may claim them as our own. Anyway, suffice it to say, the debtors are not unfamiliar with courts, nor busloads of lawyers racking up billable hours. They’ll be right at home in bankruptcy, LOL. 

It’s just too bad the lawyers weren’t there earlier. See, the debtors’ balance sheet included a $125mm principal issuance of 3.5% ‘25 senior unsecured convertible notes. The debtors innocently undertook an action with regard to that security and promptly unleashed all the demonic furies that lurk in that brain-hammering legal boilerplate. Looks like somebody didn’t read the indenture and now there is hell to pay. 

But let’s take a step back.