Sizmek files voluntary Chapter 11 petitionsSaturday, March 30th, 2019
NEW YORK — Sizmek Inc. (“Sizmek” or the “Company”), an independent buy-side advertising platform, today announced that it and certain of its subsidiaries initiated voluntary proceedings under Chapter 11 of the U.S. Bankruptcy Code to preserve value and seek access to capital while the Company continues to review strategic alternatives.
In the months preceding the filing, Sizmek has been in extended discussions with its stakeholders regarding their continued support of the Company as it pursued various strategic alternatives to address its over-leveraged balance sheet. Despite these ongoing discussions, the Company’s primary lender took control of the Company’s bank accounts and sought to divert customer receivables, thereby cutting off access to capital.
As a result of this action, Sizmek’s Board of Directors unanimously determined that Chapter 11 protection is the only responsible mechanism by which the Company can seek access to capital and preserve value while it continues to explore value-maximizing alternatives. The Company is aggressively seeking to access its existing cash, and intends to fully resume normal-course operations as soon as possible.
Sizmek’s Chapter 11 case is pending in the U.S. Bankruptcy Court for the Southern District of New York. Subsidiaries included in the filing are Sizmek Inc.; Sizmek DSP, Inc.; Sizmek Technologies, Inc.; Wireless Artist LLC; WirelessDeveloper, Inc.; X Plus One Solutions, Inc.; X Plus Two Solutions, LLC; and Point Roll, Inc.