Riverbed Technology has taken the next steps in its recapitalization, voluntarily commencing Chapter 11 cases to implement its “prepackaged” financial restructuring plan to reduce the Company’s debt by more than $1 billion and provide the Company with an additional $35 million cash infusion, positioning the Company for long-term success.
Lenders holding 100% of Riverbed’s funded secured debt have now approved the transactions contemplated in the previously announced Restructuring Support Agreement, which will be implemented through an accelerated court-supervised process.
“We are continuing to move forward with our accelerated recapitalization, through which we will reduce our debt by more than $1 billion, add a total of $100 million of investment capital and, in doing so, significantly simplify our balance sheet and fuel our next phase of growth,” said Dan Smoot, President and CEO of Riverbed Technology. “After thoroughly evaluating the different mechanisms through which to implement the recapitalization, our analysis made it clear that Riverbed could achieve a cleaner, more financially beneficial outcome by utilizing the court-supervised process, setting our company up for even greater growth and innovation opportunities in the future. Riverbed is a critical technology provider, as demonstrated by our strong double-digit bookings growth for our advanced visibility solutions, and with our outstanding business, talented team, market-relevant technology and great brand, this process will only make us stronger. We expect this to be seamless for our stakeholders, including customers and partners, and we look forward to completing the court-supervised process."
Smoot continued, “The overwhelming support we’ve received from our investors is a testament to their confidence in our growth prospects and in Riverbed following the recapitalization. Furthermore, since we announced this development, many of our customers and business partners have voiced their support and confidence in Riverbed. I would also like to thank our talented team members, who have been unwavering in their focus and commitment to delivering leading end-to-end visibility and network performance and acceleration solutions to our customers.”
As previously announced on October 13, 2021, the Company entered into a Restructuring Support Agreement with its equity sponsors and an ad hoc group of lenders (the “Ad Hoc Group”) holding a super-majority of its funded secured debt. Once the restructuring transactions, which are subject to customary closing conditions, are complete, the Ad Hoc Group of institutional investors including Apollo, will become the majority owners of Riverbed through their managed funds.
To implement the prepackaged plan, the Company has voluntarily filed for reorganization under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware and expects to successfully complete its financial restructuring process and emerge in mid-December. Riverbed’s operations and the acceleration of its strategy will continue as normal. In connection with the filing, Riverbed has filed a number of customary motions with the Court seeking authorization to support its operations while the process is ongoing.
Riverbed’s advisors include Kirkland & Ellis LLP as legal counsel, AlixPartners as restructuring advisor, and GLC Advisors & Co. as investment banker.
The Ad Hoc Group’s advisors include White & Case LLP as legal counsel and Centerview Partners as financial advisor. Davis Polk & Wardwell LLP is acting as counsel to certain members of the Ad Hoc Group.
The Latest
According to Auvik's 2025 IT Trends Report, 60% of IT professionals feel at least moderately burned out on the job, with 43% stating that their workload is contributing to work stress. At the same time, many IT professionals are naming AI and machine learning as key areas they'd most like to upskill ...
Businesses that face downtime or outages risk financial and reputational damage, as well as reducing partner, shareholder, and customer trust. One of the major challenges that enterprises face is implementing a robust business continuity plan. What's the solution? The answer may lie in disaster recovery tactics such as truly immutable storage and regular disaster recovery testing ...
IT spending is expected to jump nearly 10% in 2025, and organizations are now facing pressure to manage costs without slowing down critical functions like observability. To meet the challenge, leaders are turning to smarter, more cost effective business strategies. Enter stage right: OpenTelemetry, the missing piece of the puzzle that is no longer just an option but rather a strategic advantage ...
Amidst the threat of cyberhacks and data breaches, companies install several security measures to keep their business safely afloat. These measures aim to protect businesses, employees, and crucial data. Yet, employees perceive them as burdensome. Frustrated with complex logins, slow access, and constant security checks, workers decide to completely bypass all security set-ups ...
In MEAN TIME TO INSIGHT Episode 13, Shamus McGillicuddy, VP of Research, Network Infrastructure and Operations, at EMA discusses hybrid multi-cloud networking strategy ...
In high-traffic environments, the sheer volume and unpredictable nature of network incidents can quickly overwhelm even the most skilled teams, hindering their ability to react swiftly and effectively, potentially impacting service availability and overall business performance. This is where closed-loop remediation comes into the picture: an IT management concept designed to address the escalating complexity of modern networks ...
In 2025, enterprise workflows are undergoing a seismic shift. Propelled by breakthroughs in generative AI (GenAI), large language models (LLMs), and natural language processing (NLP), a new paradigm is emerging — agentic AI. This technology is not just automating tasks; it's reimagining how organizations make decisions, engage customers, and operate at scale ...
In the early days of the cloud revolution, business leaders perceived cloud services as a means of sidelining IT organizations. IT was too slow, too expensive, or incapable of supporting new technologies. With a team of developers, line of business managers could deploy new applications and services in the cloud. IT has been fighting to retake control ever since. Today, IT is back in the driver's seat, according to new research by Enterprise Management Associates (EMA) ...
In today's fast-paced and increasingly complex network environments, Network Operations Centers (NOCs) are the backbone of ensuring continuous uptime, smooth service delivery, and rapid issue resolution. However, the challenges faced by NOC teams are only growing. In a recent study, 78% state network complexity has grown significantly over the last few years while 84% regularly learn about network issues from users. It is imperative we adopt a new approach to managing today's network experiences ...
From growing reliance on FinOps teams to the increasing attention on artificial intelligence (AI), and software licensing, the Flexera 2025 State of the Cloud Report digs into how organizations are improving cloud spend efficiency, while tackling the complexities of emerging technologies ...