Sanrise Case Study
Sanrise, a leading pioneer in next-generation managed storage services, was formed in 1999 and by January 2001 provided SAN and LAN solutions and associated professional services to more than 650 enterprise customers in both the US and abroad. Sanrise had partnerships with the likes of Hitachi and Sun Microsystems and had raised over $200 million in venture captial to support their captial-intensive business plan. Due to the extreme drop in high-tech spending and the resulting highly-comptetitive environment, Sanrise's business suffered greatly. Many of the companies to which Sanrise provided backup and recovery services had filed for bankruptcy including their largest customer, Exodus Communications. Sanrise filed a voluntary bankruptcy petition and sought outside professional assistance.

Why DCI?
Tom Todaro, Managing Partner of DCI, was chosen to provide guidance and leadership through the bankruptcy process. Tom had previously completed successful sales and restructuring projects for Exodus Communications, Comdisco Ventures, Lighthouse Venture Partners and GATX Ventures.

The Details:
DCI worked quickly to assess the strengths and weaknesses of the Sanrise management team and the overall viability of the business. Tom joined the Creditor's Committee and quickly worked with management to create a plan to maximize value for the entire group of creditors. After extensive diligence and an exhaustive sales process, the DCI team split Sanrise into three business units: Software, Data Storage and Network Operations. DCI successfully sold the Software Division to EMC, the Data Storage Division to Managed Storage International and liquidated the Network Operations Center.

Challenges and Results
Challenges:
Throughout the bankruptcy process, DCI not only managed the complex legal process, but also assisted in successful litigation and settlement with Cable & Wireless PLC, the successor to Exodus Communications, and other parties interested in blocking deals that Sanrise sought in order to maximize value back to creditors.

The Results:
Results were achieved through asset purchase agreements with EMC and MSI for the intellectual property, human captial and the supporting assets of the Software and Data Storage Divisions. Liquidation of the remaining assets in the USA, UK, Netherlands and India accelerated and ensured that the creditors received the highest possible value.