The technology sector, for the most part, has avoided a wave of bankruptcy filings that other industries have faced, including retail, restaurants, and real estate companies.One significant technology bankruptcy this year was Pepper Pay LLC, a Miami, Fla.-based financial technology company that sold digital payment processing services to small businesses, which filed for Chapter 7 bankruptcy liquidation on March 31, according to Credit and Collection News.
Cybersecurity and cloud services firm TPx Communications seeks a sale of its assets in bankruptcy.Shutterstock
TPx Communications files bankruptcyAnd now the parent company of TPx Communications filed for Chapter 11 bankruptcy with a restructuring support agreement backed by its sponsor and secured lenders to recapitalize the debtor, eliminate significant debt, and seek a sale of its assets.The debtor filed for bankruptcy protection as its revenue growth and overall scale were insufficient to cover its funded debt obligations and to maintain the liquidity needed to fund working capital, capital expenditures, lease obligations, and ordinary expenses, according to court documents. U.S. TelePacific Corp. and 11 affiliates filed their petition in the U.S. Bankruptcy Court for the Southern District of Texas on June 28, listing $100 million to $500 million in assets and $1 billion to $10 billion in debt.Debtor seeks $175 million saleUnder the restructuring support agreement, the debtor will seek a stalking-horse bidder for the purchase of its assets for a proposed $175 million.TPx Communications will continue to operate in the ordinary course of business during its Chapter 11 case, delivering managed services to its customers day-to-day operations without interruption, according to a company statement.The Austin, Texas-based technology firm’s largest unsecured creditors include Uniti Leasing X LLC, owed over $4.8 million; Bay Area Rapid Transit District, owed over $861,000; GIP 7th Street LLC, owed over $551,000; The Irvine Company, owed over $472,000; ScanSource/BroadSoft, owed over $349,000; and the Cain Travel Group of Boulder Inc., owed over $335,000.TPx seeks over $73 million DIP loanTPx Communications’ sponsor and lenders have agreed to provide $73.6 million in debtor-in-possession financing to fund ongoing operations and the debtor’s Chapter 11 case, according to a company statement. The DIP will include $20 million in new money and a roll-up of $53.6 million in prepetition debt.The sponsor and lenders have also committed to providing exit financing for the reorganized company.”This agreement with our lenders marks a substantial step forward for TPx,” Chief Executive Officer Shaun Andrews said in a statement. “It gives us the flexibility to accelerate our strategy, increase investments that grow the business, and deliver exceptional managed services to our customers.”We’re energized by the opportunities this creates and the path ahead,” Andrews said.TPx Communications has moved away from legacy products and services that no longer align with its business goals, according to company comments about its future on its website.The debtor also said that it had identified legacy debt obligations that are also no longer aligned with its future goals, which it is addressing in the bankruptcy case.TPx provides managed services for cybersecurity, networks, and cloud communications that reduce risk and maximize the value of IT investments.TPx Communications bankruptcy case:TPx parent U.S. TelePacific Corp. files Chapter 11 bankruptcy on June 28, 2026. Assets: $100 million to $500 million.Liabilities: $1 billion to $10 billion in debt.Debtor-in-possession financing commitment: $73.6 million.Source: PetitionRelated: Award-winning brewery closes with no notice  Â