Covad To File For Bankruptcy
Another 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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