New Delaware Chapter 11 Filing – Violin Memory, Inc.
Violin Memory, Inc., (OTC: VMEM) a Santa Clara, CA based company that develops and manufactures flash-based data storage systems, filed a petition for relief under Chapter 11 in the Bankruptcy Court for the District of Delaware earlier this morning (Case No. 16-12782 (LSS)). The case has been assigned to the Honorable Laurie Selber Silverstein. According to the First Day Declaration, Violin Memory has seen its competitive advantages erode significantly after its $162 million initial public offering in 2013. Although its market position has stabilized, Violin Memory now seeks to reduce its debt through an expedited sale. According to the Bid Procedures and Sale Motion, Violin Memory lacks the funds to continue operations beyond January 23, 2017, and a sale must be completed by that date. Prime Clerk LLC is the proposed claims agent. The company has issued a press release regarding its restructuring.
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