Cloud Storage Co. Nirvanix Seeks Ch. 11 Bankruptcy Relief

Law360, New York (October 2, 2013, 1:35 PM EDT) -- Cloud storage company Nirvanix Inc. sought Chapter 11 bankruptcy protection on Tuesday in the face of a liquidity crisis and after weeks of informing customers that they should transfer their data to other storage providers.

With total assets of about $11.6 million and total liabilities of $26.6 million, the company has been unable to raise enough capital to cover basic operating costs and compete in the cloud storage industry, according to CEO Debra Chrapaty's court filing. Nirvanix owes about $22.1 million in secured debt and $1.7...
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