Independent ad tech firm Sizmek has filed for voluntary bankruptcy in the US to “address its over-leveraged balance sheet”, owing between 1,000 and 5,000 creditors money.
Sizmek initiated voluntary proceedings under Chapter 11 of the US Bankruptcy Code on 29 March in order to “preserve value while it continues to explore value-maximising alternatives”, including the potential sale of the business.
The company has been holding discussions with stakeholders over the last few months to address its issues. However, the Sizmek’s primary lender took control of its bank accounts and cut off its access to capital. The company says it is “aggressively seeking to access its existing cash”.
Under the Chapter 11 process, Sizmek will be able to continue to operate as usual as it works through its financial issues.
“Rest assured, we are committed to serving our clients to the same high standard you’ve come to expect from us and are working diligently to ensure our platforms experience as little interruption as possible,” says Sizmek on its website.