Storj Labs, the company behind the decentralized cloud storage network, filed for voluntary Chapter 11 reorganization on July 26 in the U.S. Bankruptcy Court for the Northern District of West Virginia.

The company says the filing resolves legacy obligations from an earlier chapter of the business, while operations, service and the network keep running normally with no anticipated interruption for customers.

"The business underneath is strong and right-sized. What holds it back are legacy obligations from an earlier chapter. This process lets us resolve them in an orderly way," said Kaloyan Raev, Director of Software Engineering at Storj.

Storj also intends to propose a mechanism for token holders to participate in equity of the restructured company, subject to court approval and creditor priority. STORJ trades near $0.074, down about 75% over the past year.