DJ Neon Commun Liens -3: Neon: Fiber Optek Claims Misleading
07 Jun 14:31
In a separate release Thursday, Neon Communications Inc. (NOPT) said it isn't
seeking protection under the federal bankruptcy laws from its creditors.
Earlier Thursday, Fiber Optek said it filed mechanic's liens against certain
real properties of Neon Optics Inc., a Neon Communications unit.
In response, Neon said Fiber Optek's press release was "materially
misleading," and an attempt by the contractor to pressure the settlement of
disputed contractual claims, following Neon's termination of its agreement with
Fiber Optek.
Neon said the liens are on a small portion of its network, and total
$1,178,393 out of a total network with a a book value of $192 million.
Neon plans to have the liens removed and plans to have the contractor
enjoined from filing further liens.
The company will also seek damages for the cost of "correcting the work done
by the contractor."
In reponse to Fiber Optek's concerns about Neon Optics cash flow, Neon said
it recently announced $28 million of new funding from various alternatives.
Neon Communications stock recently traded at $5.20, down 95 cents or 15.4%,
on Nasdaq volume of 2,478,800 shares, compared with average daily volume of
219,641 shares.
-Yun-Hee Kim; Dow Jones Newswires; 201-938-5388
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