Sandvine initiated restructuring proceedings under Canada’s Companies’ Creditors Arrangement Act (CCAA) and is filing for recognition under Chapter 15 in U.S. Bankruptcy Court. These moves come as part of a comprehensive realignment strategy supported by over 97% of the company’s secured lenders. Sandvine’s plan includes a Restructuring Support Agreement (RSA) allowing for the conversion of its funded debt into equity and a new super senior loan of $45 million from its investors. These funds aim to stabilize operations while enabling Sandvine to pursue its restructuring objectives in a structured legal framework.
The company will also seek approval for a Sales and Investment Solicitation Process (SISP), using the investor funding as a stalking horse bid, inviting additional offers. Additionally, Sandvine plans to convert a $30 million unfunded commitment into a debtor-in-possession loan to ensure liquidity during the restructuring. The company’s financial challenges follow disruptions tied to its placement on the U.S. Department of Commerce’s Entity List, reportedly linked to misuse of Sandvine’s technology by some clients. This restructuring is a key step in Sandvine’s shift to refocus exclusively on telecommunications companies in democratic jurisdictions, laying the groundwork for sustainable growth.
• Restructuring under CCAA with Chapter 15 filing in U.S. court
• RSA agreement with over 97% secured lenders for debt-to-equity conversion
• $45 million in new funding from investors to support ongoing operations
• Sales and Investment Solicitation Process with investor funds as stalking horse bid
• $30 million debtor-in-possession facility for liquidity during restructuring
• Business shift to serve telecommunications companies in democratic regions
• Oversight by KSV Restructuring Inc. as court-appointed monitor
“Sandvine is committed to this realignment to ensure a sustainable, long-term future for our business,” stated a company spokesperson.
- Sandvine, headquartered in Waterloo, Ontario, Canada, specializes in network intelligence and traffic management solutions that enable telecom operators to optimize and manage data traffic across their networks. Founded in 2001, the company’s products help network providers enhance performance, ensure fair usage, and deliver better quality of experience for users by offering insights into data flow and application usage patterns. Sandvine’s mission is to empower service providers to enhance their networks and improve user experiences by providing deep visibility and analytics. Throughout its history, Sandvine has been a key player in network policy control, evolving its technology to address the complexities of modern networks and the growing demand for data, especially among large telecommunications companies worldwide.