Avoid your company from being under pressure: All about the Sizmek bankruptcy case

Sizmek, the US-based ad tech company, has filed for voluntary bankruptcy in an effort to tame its “over-leveraged balance sheet”, a situation that reflects the increasingly tough market in which ad tech firms compete.

What about the balance sheet?

On Friday evening, the independent company issued a press release , announcing that it had “initiated voluntary proceedings under Chapter 11 of the US Bankruptcy Code to preserve value and seek access to capital while the Company continues to review strategic alternatives”. Those strategic alternatives are the firm’s hope for addressing its over-leveraged balance sheet.

The proceedings do not mean that Sizmek will not be doing business

A representative of Sizmek’s Australian business told AdNews that “The US Chapter 11 process — unlike bankruptcy schemes in other geographies — is specifically designed for companies like ours to operate as usual while working to resolve financial issues”.Sizmek’s bankruptcy filing estimates the value of its assets at between $100m and $500m, with its liabilities in the same range. Some of its largest outstanding debts are staggering: Index Exchange is owed $8.9m, PubMatic $7.3m, OpenX $5.9m…