Nov 15, 2001 : Verado Considers Chapter 11
📅 - Managed Web hosting firm Verado (verado.com) is considering filing for Chapter 11 bankruptcy protection, the company said yesterday in its quarterly earnings report.
According to the report, the company said it was having discussions with "an informal committee of its bondholders" regarding filing for Chapter 11.
"Assuming these discussions are successfully concluded, as to which there can be no assurances, the Company will seek confirmation of the negotiated plan through a voluntary Chapter 11 proceeding," the report said.
Varado also said it had retained Credit Suisse First Boston to help in the company's financial restructuring.
The company said it "expects to incur net losses for the next several years and anticipates that it is currently funded for at least the next 12 months," and also warned that any restructuring would likely dilute its common stock.
Last month, Verado said it would close six of its eight centers, leaving its IDCs in Denver, Colorado and Irvine, California up and running. As of September 30, the company had 139 customers spread across its data centers, and expected the closures to affect 58 of those customers. Verado also said only eight per cent of its "sellable square footage" was currently occupied.
Verado said it has generated cumulative net losses of approximately $646 million, and currently has $66.3 million remaining.
According to the report, the company said it was having discussions with "an informal committee of its bondholders" regarding filing for Chapter 11.
"Assuming these discussions are successfully concluded, as to which there can be no assurances, the Company will seek confirmation of the negotiated plan through a voluntary Chapter 11 proceeding," the report said.
Varado also said it had retained Credit Suisse First Boston to help in the company's financial restructuring.
The company said it "expects to incur net losses for the next several years and anticipates that it is currently funded for at least the next 12 months," and also warned that any restructuring would likely dilute its common stock.
Last month, Verado said it would close six of its eight centers, leaving its IDCs in Denver, Colorado and Irvine, California up and running. As of September 30, the company had 139 customers spread across its data centers, and expected the closures to affect 58 of those customers. Verado also said only eight per cent of its "sellable square footage" was currently occupied.
Verado said it has generated cumulative net losses of approximately $646 million, and currently has $66.3 million remaining.
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URL source: http://www.thewhir.com/marketwatch/verado1115.cfm
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