Ailing cloud firm Nirvanix seeks Chapter 11 bankruptcy

Firm gave notice to customers to move cloud services last month, but filed for bankruptcy this week

Cloud provider Nirvanix has sought Chapter 11 bankruptcy after telling customers last month that they had just two weeks to change provider.

In September, UK-based major Nirvanix partner and cloud firm Aorta Cloud came to customers' rescue and offered to support them, with the help of IBM.

Chapter 11 is a part of US law which allows companies to reorganise themselves under the bankruptcy laws.

In a statement issued on its website, Nirvanix said: "On 1 October, Nirvanix voluntarily sought Chapter 11 bankruptcy protection in order to pursue all alternatives to maximise value for its creditors while continuing its efforts to provide the best possible transition for customers."

It added that it was making every effort for services to be available until the middle of October and said it had established a rapid-response service for those affected too. It suggested affected customers and partners regularly check its website for further details.