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Nirvanix files for bankruptcy

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Nirvanix Inc., a cloud-based data storage company, on Tuesday sought bankruptcy protection from creditors, without citing a reason.

The San Diego-based company listed assets and debt of $10 million to $50 million each, according to chapter 11 documents filed in Wilmington, Del.

"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," the company said in a message on its website.

The company, calling itself "the leader in enterprise cloud storage" offers cloud storage solutions designed specifically for customers with security, reliability and redundancy requirements, according to company statements. Customers storage products are built from the ground for the largest media and entertainment companies, financial institutions and technology companies.

"For the past seven years, we have worked to deliver cloud storage solutions. We have concluded that we must begin a wind-down of our business and we need your active participation to achieve the best outcome," Nirvanix said on its website.

It said it would assist customers in either returning their data or transferring it to similar platforms offered by International Business Machines Corp. (NYSE: IBM), Google Inc. (Nasdaq: GOOG), Microsoft Corp. (Nasdaq: MSFT) and Amazon.com Inc. (Nasdaq: AMZN).

In March the company appointed Debra Chrapaty as CEO, the former chief investment officer of mobile-game developer Zynga Inc. (Nasdaq: ZNGA), according to a statement.

Khosla Ventures IV LP, a venture capital firm focused on technology, owns more than 70 percent of both the Series 1 preferred stock and the junior preferred stock as well as 15.5 percent of the common stock, court papers show. A venture capital unit of Intel Corp. (Nasdaq: INTC) owns more than 20 percent of the common equity, and 17 percent of the Series 1 preferred and about 22 percent of the junior preferred. Valhalla Partners II LP owns about 25 percent of the common stock and Mission Ventures III LP owns about 24 percent.

The case is In re Nirvanix Inc., 13-12595, U.S. Bankruptcy Court, District of Delaware (Wilmington).

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