Another bits the dust.......RIP
mad2
ZipLink Closes Down After Failing
To Raise New Cash or Find Buyer
A WSJ.COM News Roundup
LOWELL, Mass. -- ZipLink Inc., a provider of dial-up and
digital-subscriber-line Internet services, said it is closing its
business and laying off most of its employees.
The move was expected. ZipLink, which went public in May 1999, had said
last week that it would shut down by Friday unless it could obtain
additional cash or a buyer. The wholesale Internet-connectivity provider
said it has been trying to raise fresh funding since March.
ZipLink also said Spinway.com Inc., a provider of free Internet access
and its second-largest customer, recently defaulted on payments due
ZipLink, weighing on its decision to go out of business.
ZipLink said a few employees will stay on to help wind down operations.
The company said it is evaluating the best way to dispose of assets,
including its 50,000-square-foot office and data center in Lowell, Mass.
and its Canadian operations. It expects all of the proceeds from any
asset sales to go to creditors, with no money left over for
shareholders.
"We are extremely disappointed by the recent events leading to our
suspending operations," President Chris Jenkins said in a prepared
statement. "We thank our valued customers who have relied upon us to
provide them with state-of-the-art Internet connectivity and believed in
our vision. We are also deeply saddened to lay off members of our staff
whose dedication and hard work are unsurpassed."
Last week, ZipLink said that Co-Chairman Henry M. Zachs agreed to
guarantee additional borrowings under the company's $10 million line of
credit while ZipLink continued talks with several potential acquirers.
That money, the company said, would allow it to continue operating until
Nov. 17. Earlier this month, the company said it wouldn't be able to pay
the $1.9 million it owed WorldCom Inc. by Nov. 10 unless it drew on its
credit line with Fleet National Bank. WorldCom agreed to extend the due
date to Nov. 30.
Shares of ZipLink were halted at 41 cents, down nine cents, or 19%, on
the Nasdaq Stock Market. The stock has tumbled from its 52-week high of
$23.88 set Dec. 21, 1999.
__________________________________
THREE GREAT WAYS TO GET THE WALL STREET JOURNAL
Online - interactive.wsj.com
Print - subscribe.wsj.com
Mobile - interactive.wsj.com
__________________________________
WSJ.COM E-MAIL CENTER
To subscribe or unsubscribe to any WSJ.com e-mail, go to:
public.wsj.com
You are currently subscribed as michaeldwyer@MSN.COM
___________________________________
Copyright 2000 Dow Jones & Company, Inc. All Rights Reserved.
Privacy Policy -
interactive.wsj.com
Contact Us -
interactive.wsj.com |
