DJ NEON Commun Liens -2:Neon Commun Cited Cash Flow Problems
07 Jun 07:58
WAPPINGERS FALLS, N.Y. (Dow Jones)--A creditor of Neon Optics Inc., a unit of
Neon Communications Inc. (NOPT), filed mechanic's liens against the company on
certain real property.
In a press release Thursday, creditor Fiber Optek cited concern about Neon
Communications' April 12 Securities and Exchange filing in regard to cash flow
problems as it took steps to confirm its position as a Neon Optics secured
creditor.
In the April 12 SEC filing, Neon Communications filed to sell up to $25
million common shares, preferred shares, debt and warrants. The company planned
to use proceeds for operating costs, capital expenditures and working capital.
"We have experienced, and are currently experiencing, cash flow problems,"
Neon Communications said. "We may be required to seek protection from our
creditors under the federal bankruptcy laws."
Fiber Optek indicated in its release Thursday it would file additional liens
in the coming days. The property cited in the latest mechanic's liens include
optical cable networks and license agreements in Westchester County, N.Y.
Fiber Optek, a trademark of Fiber Optek Interconnect Corp., designs and
installs fiber optic communications systems.
Neon Communications provides high-bandwidth fiber optic transmission
capacity.
Fiber Optek Web site: fiberoptek.com
-Lisa Reynolds; Dow Jones Newswires; 201-938-5400
(END) DOW JONES NEWS 06-07-01
07:58 AM |
