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Strategies & Market Trends : Making Money is Main Objective

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To: Softechie who started this subject	1/16/2001 9:11:23 PM
From: Softechie	Read Replies (1) of 2155

NPNT CLEC down and out. NorthPoint to file Chapter 11, sell assets SAN FRANCISCO, Jan 16 (Reuters) - NorthPoint Communications Inc. (NasdaqNM:NPNT - news) on Tuesday said it filed for Chapter 11 bankruptcy protection and will sell most all of its business following Verizon Communications' (NYSE:VZ - news) decision in November to pull out of a deal to buy 55 percent of NorthPoint. The San Francisco-based company said, however, that it has secured $38 million in debtor financing to continue day-to-day operations until it can find a buyer. NorthPoint has sued Verizon and is seeking up to $1 billion in damages in a jury trial, alleging that Verizon illegally breached an agreement to merge the two companies' digital subscriber line (DSL) businesses. The original deal was valued at $800 million. A NorthPoint spokesman said the lawsuit would still go forward despite the bankruptcy filing. ``We have really seen the lawsuit as an asset,'' said Marvin Wamble, spokesman for NorthPoint. When the suit was filed back in December, a Verizon spokesman said the company pulled out of the deal due to ``the deterioration of (NorthPoint's) business.'' Last week, NorthPoint announced a deal to sell 50 percent of its Canadian subsidiary to Toronto, Canada-based Call-Net Enterprises Inc. for US$5.3 million (C$8 million). Earlier on Tuesday, NorthPoint shares ended Tuesday up 21/32 at $1-13/32 on the Nasdaq. Their shares have traded as high as $34-12/16 over the past year and as low as 1/4. The bankruptcy announcement came after the market closed.

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