A telecommunications infrastructure company known as Tilson has sought protection under Chapter 11 of the U.S. Bankruptcy Code. This significant financial step follows the abrupt cancellation of a major contract the company held with Gigapower.
The contract with Gigapower, a joint venture involving AT&T and BlackRock, was a substantial source of business for Tilson, involving the buildout of fiber optic networks. The unexpected termination of this agreement appears to have created significant financial strain, ultimately leading Tilson to file for bankruptcy reorganization.
This move allows Tilson to continue operating while it attempts to restructure its debts and obligations under court supervision. The company’s goal is to navigate its financial challenges and hopefully emerge from Chapter 11 as a viable business, though the loss of the Gigapower contract presents a considerable hurdle. The filing highlights the volatility and risks inherent in large-scale infrastructure projects and the potential impact of contract disputes or cancellations on even established players in the telecom buildout sector.
Source: https://www.datacenterdynamics.com/en/news/tilson-files-for-chapter-11-bankruptcy-following-cancellation-of-gigapower-contract/
