Violin Memory, filing for chapter 11 protection, is looking to auction its business next month. Shares fell nearly 50% as it says it wants to “streamline its operations and balance sheet”.
To facilitate this restructuring, Violin Memory has filed a voluntary petition for reorganization under chapter 11 of the US Bankruptcy Code in the Bankruptcy Court for the District of Delaware, and is seeking to hold an auction in early January for the business.
Violin Memory says it continues to have core strengths that it believes can lead to value creation, including leveraging the company's:
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Annual recurring service revenue
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Broad patent portfolio
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58 US Patents/24 pending
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64 Foreign Patents/38 pending
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Single O/S for public, private and hybrid cloud environments
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Proven integrated hardware and software solutions
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Customer base that includes some of the largest enterprises in the world
Kevin A. DeNuccio, Violin Memory's President and CEO stated: "We are taking this action, which should conclude by the end of January 2017, to bolster Violin's ability to serve the needs of its customers. Violin intends to continue to sell solutions to customers and prospects as well as service and support customers during this restructuring."