After filing for chapter 11 bankruptcy, cloud storage provider Nirvanix has left a lot of its creditors, particularly Dell, holding serious amounts of worthless paper.
Nirvanix on Monday filed for Chapter 11 protection, and in its filing, a copy of which is available on Scribd, said it had both assets and liabilities in the $10 million to $50 million range.
Nirvanix last month told customers they would have to move their data from the Nirvanix storage cloud before it was shut down.
The company Monday posted a statement on its website that read, "On October 1, 2013, Nirvanix voluntarily sought Chapter 11 bankruptcy protection in order to pursue all alternatives to maximize value for its creditors while continuing its efforts to provide the best possible transition for customers."
Nirvanix executives were unavailable to provide further information.
Among the unsecured creditors Nirvanix listed in its Chapter 11 filing, the top spot belongs to Dell Marketing LP, an affiliate of Dell that has an unsecured claim of $407,463.03.
In the No. 2 spot is Nimsoft, a developer of IT performance and system availability monitoring technology. Nimsoft, which in 2010 was acquired by CA Technologies, has a disputed unsecured claim of $156,100.00.
Also high on the list was hosting services provider Equinix. Equinix (Germany) has a secured claim of 127,133.97 euros, or nearly $171,000, while Equinix New York has a secured claim of $129,060.46. An industry source told CRN that Nirvanix hosted much of its cloud storage using Equinix facilities.
Nirvanix, which has given its customers until Oct. 15 to move their data to another cloud or risk it being lost, said on its website it is helping migrate customers to alternative cloud offerings including IBM SoftLayer, Amazon S3, Google Storage and Microsoft Azure, and it has an agreement with IBM to aid in the migration.
Nirvanix had been providing enterprise-class public, private and hybrid cloud storage as a service. The company owns its own public cloud infrastructure based in multiple data centers, or nodes, around the world. It also uses its technology to help customers build private clouds using either the customer's own storage infrastructure or a segmented, non-shared part of the Nirvanix public cloud.
Dell, Equinix, CA and Nirvanix were unable to comment on the Nirvanix bankruptcy at press time.
PUBLISHED Oct. 1, 2013