Shares of Edgio Inc ( EGIO ) plunged an additional 34% to $0.80 on Tuesday, following the company’s announcement Monday that it had voluntarily filed for Chapter 11 bankruptcy in Delaware.

Tuesday’s decline adds to Monday's 80% drop, after the company revealed its plans to facilitate a sale of its business while continuing operations under new ownership.

What Happened: On Monday, Edgio ( EGIO ) disclosed that it had entered into a $110 million credit bid with its primary lender, Lynrock Lake Master Fund LP, to serve as a cornerstone for the sale process. The company expects the sale to be completed within 80 days. In the meantime, Edgio ( EGIO ) assured that its key services, including web security and video streaming, would continue uninterrupted during this transitional period.

To ensure smooth operations during the bankruptcy proceedings, Edgio ( EGIO ) also secured $15.6 million in debtor-in-possession (DIP) financing and has filed motions to ensure payments to employees and vendors are maintained.

The company's strategy involves leveraging Chapter 11 to sell the business while stabilizing operations, with Lynrock Lake providing support throughout the process.

According to data from Benzinga Pro, EGIO has a 52-week high of $44.00 and a 52-week low of $0.74.