AppliedTheory Files for Bankruptcy, Sells Hosting, Network Units
📅 - Managed hosting firm AppliedTheory Corp. (appliedtheory.com) said today it had filed for Chapter 11 bankruptcy protection.
In conjunction with the filing, the company said it had agreed to sell its network business to Internet services firm FASTNET Corporation, and that it had entered in to an agreement with Web hosting firm ClearBlue Technologies, Inc. to purchase AppliedTheory's managed hosting business.
AppliedTheory also said it had secured a "tentative commitment" for debtor-in-possession financing to fund operating expenses, supplier obligations and personnel costs.
The announcements came two days after the company warned in its annual report that it would likely file for bankruptcy protection.
"Over the last year, we have acted assertively in response to very difficult economic situations by closing unprofitable regional offices, streamlining our workforce, and tightening our belt around general administrative and operating expenses," said CEO Danny Stroud. "By reorganizing our capital structure, AppliedTheory will be positioned to emerge from Chapter 11 in its historical role as a leader in managed hosting services."
As of December 31, the company said it had an accumulated deficit of nearly $147 million.
In conjunction with the filing, the company said it had agreed to sell its network business to Internet services firm FASTNET Corporation, and that it had entered in to an agreement with Web hosting firm ClearBlue Technologies, Inc. to purchase AppliedTheory's managed hosting business.
AppliedTheory also said it had secured a "tentative commitment" for debtor-in-possession financing to fund operating expenses, supplier obligations and personnel costs.
The announcements came two days after the company warned in its annual report that it would likely file for bankruptcy protection.
"Over the last year, we have acted assertively in response to very difficult economic situations by closing unprofitable regional offices, streamlining our workforce, and tightening our belt around general administrative and operating expenses," said CEO Danny Stroud. "By reorganizing our capital structure, AppliedTheory will be positioned to emerge from Chapter 11 in its historical role as a leader in managed hosting services."
As of December 31, the company said it had an accumulated deficit of nearly $147 million.
Reads: 1384 | Category: General | Source: TheWHIR : Web Host Industry Reviews
URL source: http://www.thewhir.com/marketwatch/app041802.cfm
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