IBahn Files For Chapter 11 Bankruptcy


Didn’t see this coming. How could hotel internet provider find its business so unprofitable that they need to file for chapter 11 bankruptcy?


For those outside of the North America, the chapter 11 bankruptcy is not a bankruptcy where the company would be liquidated. It is rather reorganization of existing debt and other liabilities. Most of the US Airlines have done it at least one time.


The main reason behind the bankruptcy, according to the company, was the iBahn’s inability to meet Marriott’s 2009 vendor certification process until 2013 that prevented Marriott hotels to extend their contracts or iBahn to sign up new ones. The company lost third of its Marriott related business due to this.

There is more about this bankruptcy on WSJ’s website here and on Bloomberg’s website here.


It would be interesting to find out what these vendor certification requirements, which took effect in 2009 and the company couldn’t meet before four years later, actually are.

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