Apr, 2002 : AppliedTheory to File for Bankruptcy Protection
📅 - Managed hosting firm AppliedTheory Corp. said in its annual report yesterday that it expected to voluntarily petition for Chapter 11 bankruptcy protection with the U.S. Bankruptcy Court for the Southern District of New York.
"We have incurred significant losses since our founding and our cash resources and expected revenues from operations are insufficient to meet our existing obligations and our long-term needs for continuing operations," the company said in its filing. "We have been unable to obtain sufficient additional financing to sustain our operations."
AppliedTheory said it would petition the court to allow it to continue operating as a debtor-in-possession (DIP), and that it required between $3 and $5 million in DIP financing.
AppliedTheory warned that filing for bankruptcy protection would likely hamper its ability to retain customers, employees and generate revenues as well. "We may be required to terminate the operation of all or a portion of our current business," the company said.
In its filing, the company also said it was currently investigating the option of selling its business. "We are actively exploring opportunities and currently intend to sell all, part or parts of our business, and we are currently in preliminary discussions with potential bidders," the company said. "If the costs of conducting our operations during our expected bankruptcy case are greater than we expect or it takes longer than we expect to obtain financing and/or find a buyer for our business or assets, it could lead us to terminate our operations or to liquidate a portion of our assets sooner than we expect."
Founded in 1996 as a spin-off of IT engineering firm NYSERNet, AppliedTheory customers include AOL, America's Job Bank and Ingersoll-Rand.
"We have incurred significant losses since our founding and our cash resources and expected revenues from operations are insufficient to meet our existing obligations and our long-term needs for continuing operations," the company said in its filing. "We have been unable to obtain sufficient additional financing to sustain our operations."
AppliedTheory said it would petition the court to allow it to continue operating as a debtor-in-possession (DIP), and that it required between $3 and $5 million in DIP financing.
AppliedTheory warned that filing for bankruptcy protection would likely hamper its ability to retain customers, employees and generate revenues as well. "We may be required to terminate the operation of all or a portion of our current business," the company said.
In its filing, the company also said it was currently investigating the option of selling its business. "We are actively exploring opportunities and currently intend to sell all, part or parts of our business, and we are currently in preliminary discussions with potential bidders," the company said. "If the costs of conducting our operations during our expected bankruptcy case are greater than we expect or it takes longer than we expect to obtain financing and/or find a buyer for our business or assets, it could lead us to terminate our operations or to liquidate a portion of our assets sooner than we expect."
Founded in 1996 as a spin-off of IT engineering firm NYSERNet, AppliedTheory customers include AOL, America's Job Bank and Ingersoll-Rand.
Reads: 1376 | Category: General | Source: TheWHIR : Web Host Industry Reviews
URL source: http://www.thewhir.com/marketwatch/app041702.cfm
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