Linqto Files for Voluntary Chapter 11 to Protect and Maximize Stakeholder Value Through Court-Supervised Restructuring

Linqto Expects to Continue Limited Business Operations in the Ordinary Course During Proceedings

Secures Commitment for Up to $60 Million in DIP Financing to Support the Restructuring

Linqto Continues to Cooperate with Regulators in Connection with Ongoing Investigations

SAN JOSE, Calif.--(BUSINESS WIRE)--Linqto, Inc., along with Linqto Texas LLC, Linqto Liquidshares LLC, and Linqto Liquidshares Manager LLC (collectively, “Linqto”) today announced that Linqto filed for voluntary Chapter 11 proceedings in the U.S. Bankruptcy Court for the Southern District of Texas (the “Court”). Linqto took this step to protect and maximize stakeholder value through a court-supervised restructuring and expects to continue operating throughout the restructuring process.

“After carefully evaluating Linqto’s alternatives, the Board of Directors made the decision that seeking a court-supervised restructuring was in the best interests of all Linqto customers to preserve, protect, and maximize the value of Linqto’s assets for the benefit of its stakeholders,” said Dan Siciliano, Linqto Chief Executive Officer.

"Linqto cannot continue to operate under existing conditions without restructuring. The company faces potentially insurmountable operating challenges as a result of serious alleged securities law violations and related ongoing investigations by the Division of Enforcement of the U.S. Securities and Exchange Commission as well as other regulatory agencies. In addition, Linqto recently discovered several serious defects in the corporate formation, structure, and operation of the business that raise questions about what customers actually own and which management believes can only be fairly and effectively addressed through restructuring.

“When the new management team was hired in early 2025, we made it clear that there can be no path forward that preserves value of customer interests without remediating alleged securities laws violations from prior management and not breaking the law. Despite reducing expenses, the only way forward is to seek court-supervised protection that will let us restructure the business into a profitable, law-abiding organization while resolving the ongoing regulatory investigations faster,” said Mr. Siciliano.

Linqto has filed customary motions with the Court seeking a variety of “first day” relief, including the authority to continue to pay essential employee wages and benefits, among other traditional reorganizational relief. Linqto expects to receive Court approval for these requests.

Linqto has received a commitment for debtor-in-possession (“DIP”) financing of up to $60 million from Sandton Capital Partners, LP. Upon Court approval, the additional liquidity from the DIP financing, combined with cash on hand, is expected to support critical business needs during these proceedings.

Linqto has hired bankruptcy and restructuring veteran Jeffrey S. Stein, Managing Partner at Breakpoint Partners LLC, as Chief Restructuring Officer. Mr. Stein brings decades of experience to this position as a leader and executive at both public and private companies. Mr. Stein has particular expertise in supporting companies that are driving meaningful business transformations and undergoing financial restructurings. This includes developing and enhancing corporate growth and turnaround strategies, evaluating financing alternatives, analyzing capital investment programs, managing complex litigation matters and assessing asset acquisition and disposition opportunities.

“Jeff’s expertise gives us confidence. His tenor and experience will help lead us through the court-supervised restructuring and help Linqto emerge as a law-abiding entity that puts its customers first,” said Mr. Siciliano.

Additional information regarding Linqto’s Chapter 11 filing, proceedings and claims process is available at https://dm.epiq11.com/Linqto. Questions about the claims process should be directed to Linqto’s claims agent, Epiq Global, at [e-mail] or by calling [phone] or [phone] for calls originating outside of the U.S.

Advisors

Schwartz, PLLC is serving as bankruptcy counsel. Portage Point Partners is serving as restructuring advisor and Jefferies is serving as investment banker. ThroughCo Communications LLC is serving as communications advisor.

About Linqto

Linqto is a global investing platform designed to give accredited investors indirect access to investments in private companies and unicorns. Linqto’s platform has provided customers with access to a range of pre-IPO companies with an approximate value in excess of $500 million. For more details, visit www.linqto.com.

IMPORTANT LEGAL NOTICE AND DISCLOSURES: This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of that jurisdiction.