Check Point has filed for Chapter 11 bankruptcy protection, ending its $1 billion investment in the software giant, according to people familiar with the matter.
The software company said on Tuesday it would exit the Chapter 11 process in 2018, according the people, who asked not to be identified discussing internal company matters.
Check Point will not seek repayment from creditors as part of the bankruptcy filing, the people said.
It is unclear how the company’s investors would benefit from the Chapter 10 filing, they said.
The company said it would close offices in San Francisco and Miami and reduce its workforce by 10 percent.
It has a cash balance of $1,064 million, the company said.
Shares of Check Point rose 1.4 percent to $7.25 in afternoon trading.