Another one bites the dust and the shareholders are wiped out:
Beyond.com Corporation to Sell Assets and Customer Contracts to Digital River, Inc.
SANTA CLARA, Calif.--(BUSINESS WIRE)--Jan. 25, 2002--Beyond.com Corporation (Nasdaq:BYND) today announced that it has agreed to sell substantially all of its assets to Digital River, Inc. (Nasdaq:DRIV) and has filed a voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code. The asset sale is subject to certain closing conditions, including bankruptcy court approval.
Beyond.com had been seeking additional capital to both strengthen its balance sheet and satisfy debt obligations, but was unable to secure the necessary financing. The Chapter 11 filing will enable Beyond.com to maintain operation of its business during the sale approval process.
"This filing protects the value of Beyond.com's business, including its eStores and Government Systems businesses for the benefit of Beyond.com's creditors, and will help to ensure that our customers continue to receive uninterrupted service through the sale process," said Ron Smith, president and CEO of Beyond.com.
Under the terms of the agreement, Digital River has agreed to acquire substantially all of the assets and customer contracts related to the eStores and Governments Systems Group businesses in exchange for $3.5 million in cash and $7.5 million in Digital River common stock, subject to certain escrow and sale restrictions and certain resale registration rights. The agreement also provides Beyond.com an earn-out for an additional $1.5 million in Digital River common stock, and provides for certain purchase price reductions in certain events. Digital River is not assuming liabilities of Beyond.com other than obligations under the Beyond.com client contracts. Beyond.com expects that the purchase price payable by Digital River for the assets will be insufficient to cover all of Beyond.com's liabilities and that, therefore, Beyond.com's stockholders will not receive any distribution upon completion of the bankruptcy proceedings. |
