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Tandberg Data, the Norwegian company that sells tape libraries and removable disk drives, filed for bankruptcy in Norway and has been taken over by one of its creditors. Day-to-day operations continue for Tandberg’s U.S. subsidiary, Tandberg Data Corp., and its other subsidiaries as the parent company restructures. Tandberg went into bankruptcy because it failed to repay a loan to Cyrus Capital, which then acquired Tandberg’s assets and became its biggest shareholder after the bankruptcy.
According to a press release put out by Tandberg,
Tandberg Data has been unsuccessful in repaying a lapsed loan from Cyrus Capital. As a result Cyrus Capital had no other option other than to enforce their pledges of their loan. As Tandberg Data did not have sufficient capital to repay the loan, it had no alternative than to file for bankruptcy for the holding company, Tandberg Data ASA, and Tandberg Storage.
The Board of Directors of Tandberg Data made the decision to file for bankruptcy after consideration of all other alternatives, including a rights issue, which was unsuccessful. This process will allow Tandberg Data to deal with its cost and debt burden, to effectively restructure its operations and to continue its strategic direction of broadening its focus from being a tape company to a company that provides data protection solutions, including tape, disk, software and services.
The press release attributed at least some of the financial woes to “the global financial crisis,” which it said “impacted the company’s ability to successfully deal with its debt burden.”
Tandberg CEO Pat Clarke, who took over in early 2008, said in the press release that the company will live to fight another day. “The difficult steps we are taking now will enable us to build a company that can be successful in providing data protection solutions and support to our valued customers, suppliers, and business partners for a long time to come,” Clarke said
Clarke took over with the goal of restructuring the company, whose storage products have mostly been based on tape (including IP from the 2006 acquisition of Exabyte). Last year Tandberg added more disk products like the ProStor RDX removable disk cartridge to its portfolio, and refreshed its message around archiving and tiered storage workflows rather than differentiating its products based on hardware features.