MicroAge has filed voluntary petitions for reorganisation under Chapter 11 of the US bankruptcy code.
The hybrid distributor, which has struggled in the past several months in the transition to the e-business economy, said the move was made to "facilitate the restructuring necessary to continue its transformation into a business-to-business technology solutions provider".
As well as the filing, MicroAge said it had received a commitment from a group of financial institutions led by Citibank for $225m (£141m) in debtor-in-possession (DIP) financing. The DIP facility, which is subject to court approval, is expected to provide adequate funding for all post-petition trade and employee obligations, as well as the company's ongoing operating needs, during the restructure.
Jeffrey McKeever, chief executive at MicroAge, said in a statement: "Over the next several weeks and months, MicroAge will make the changes necessary to meet the demands of the dynamically changing computer industry.
Business will go on as usual, and MicroAge will continue to operate."
McKeever claimed the decline in the company's sales during the first quarter resulted in constraints by the company's lenders and a tightening of credit terms from its vendors.
He said this had made it difficult to obtain enough products at prices and terms necessary to meet customer needs.
McKeever said MicroAge is in contact with a number of its major vendors and expects them to support the company.
The distributor entered the UK in June 1998 when it bought a majority interest in IBM reseller Bell & Watson. "By the end of the current quarter, it is expected that MicroAge will be able to reduce its operating expenses by $164m on an annual basis," McKeever added.
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