If I recall.. this was a short of yours.. (or perhaps Roger's?)
CyberCash Files for Chapter 11 to Aid Merger With Network 1
By Jeff St.Onge
Wilmington, Delaware March 2 (Bloomberg) -- CyberCash Inc., a pioneer developer of online-payment software that never turned a profit, filed for Chapter 11 bankruptcy protection to facilitate a merger with Network 1 Financial Corp.
CyberCash, of Reston, Virginia, listed $33.8 million in total assets and $10.4 million in total debts in papers filed with the U.S. Bankruptcy Court in Wilmington.
The two companies have entered into an asset purchase agreement, which is subject to bankruptcy court approval. McLean, Virginia-based Network 1, a top provider of payment processing and Internet payment systems, said the parties hope to complete the transaction in early April.
Bill Wade, Network 1's chief executive, said in a statement that the company's experience ``will enable us to successfully merge the assets of CyberCash into the Network 1 business model to create a profitable and growing business enterprise.''
An earlier merger was abandoned after CyberCash was unable to raise needed financing, Network 1 said.
CyberCash's largest unsecured creditors are New York-based Robinson Lerner & Montgomery, owed $224,764; and Fairfax County Virginia, owed $146,682, court papers show.
Trading in CyberCash shares was halted on the Nasdaq. On Thursday, CyberCash stock rose 3 cents to 78 cents a share. The stock, which hit a 52-week high of $16 a share on March 14, 2000, has lost 91.8 percent of its value over the past year.
CyberCash Chairman William N. Melton owns more than 5 percent of the company's voting securities, according to court papers |
