Covad To File For Bankruptcy
by Maarten Goldstein, Aug 07, 2001 9:31am PDTAnother DSL provider in big trouble, Covad this time according to this Yahoo story. The company will file for bankruptcy protection by mid-August, and is talking with bondholders to get rid of a $1.4 billion debt. Thanks Chunks. The company will try to restructure in order to return to a positive cash flow. Covad follows Rhythms, Northpoint and other high speed internet providers that either went out of business or are under bankruptcy protection. Covad already had its fair share of problems (story)
Upon restructuring, Covad said it expects to pay out $283.3 million to bondholders. After the payout, Covad said it will have about $250 million of cash on a pro forma basis as of June 30, 2001, enough to run its business into early 2002. It said it expects to emerge from bankruptcy by January 2002.
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Comments
What a bunch of bullshit. I don't want to get @Home, dammit.
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And the cable industry isn't getting any better either; AT&T wants all residential customers to use @Home. Microsoft wants to buy AT&T's cable operations and turn it into a sprawling broadband incarnation of MSN. AOL wants to buy it and proprietarize it as well.
What the hell am I going to do once I get out of college? The baby bells suck, and the cable companies perform contractual arm-twisting before letting you see the capabilities of their service. The government better step in on this one, or the only viable solution for me will be a T1 line, or living at work 24/7.
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And then watch the Internet come under the heel of the right wing!
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What happened the new economy
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What does @Home cap their upload rates at?
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I am about to move. Earthlink said I can get DSL. Sprint ION says I can get it. I bet they both use Covad.
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Never ever try to out duel a phone company, you never win.
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SprintION looks interesting ... but it is in the same financial troubled boat. :/
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So is it Chapter 11 or Chapter 7?
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