10:33 AM EDT, 09/09/2024 (MT Newswires) -- Edgio ( EGIO ) said Monday it has voluntarily filed for Chapter 11 relief in the US Bankruptcy Court for the District of Delaware to pursue one or more sale transactions for the continued operation of its business under new ownership.

The company said it has entered into a stalking horse asset purchase agreement with its primary lender, Lynrock Lake Master Fund, which has agreed to acquire Edgio ( EGIO ) assets through a $110 million credit bid.

Edgio ( EGIO ) also said it has entered into a deal to receive about $15.6 million of funded debtor-in-possession financing from Lynrock to ensure the continued delivery of products to customers throughout the sale process and Chapter 11 cases.

The company said it plans to use a court-supervised sale process to determine the highest or best bid from interested parties.

Shares of Edgio ( EGIO ) slumped more than 77% in recent Monday trading.

Price: 1.38, Change: -4.79, Percent Change: -77.63