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.
Contact Norman L. Pernick and Nicholas J. Brannick for more information.
As the law continues to evolve on these matters, please note that this article is current as of date and time of publication and may not reflect subsequent developments. The content and interpretation of the issues addressed herein is subject to change. Cole Schotz P.C. disclaims any and all liability with respect to actions taken or not taken based on any or all of the contents of this publication to the fullest extent permitted by law. This is for general informational purposes and does not constitute legal advice or create an attorney-client relationship. Do not act or refrain from acting upon the information contained in this publication without obtaining legal, financial and tax advice. For further information, please do not hesitate to reach out to your firm contact or to any of the attorneys listed in this publication.
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