Tuesday, August 15, 2017

Crossroads Systems Files For Chapter 11 Bankruptcy

Austin-based Crossroads Systems, the developer of data storage technology, has filed for Chapter 11 bankruptcy, the company said on Monday. According to Crossroads, in conjunction with the filing, it has entered into a restructuring support agreement with 210/CRDS Investment LLC, and certain holders of the company's Series F preferred stock, where 210 RSA will invest $4M cash in the company in exchange for 49.49% ownership of the company. The deal also includes a $10M line of credit for acquisitions. Crossroads was originally a developer of storage routers, but in the last few years has been focused on IP and technology licensing of its patents. The 210 investment group is based in Dallas.