Viasource Commun Files For Chap 11 Reorganization
Dow Jones Newswires
FORT LAUDERDALE, Fla. -- Viasource Communications Inc. (VVVV), has voluntarily filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code in Florida.
Viasource's principal lender GE Capital Corp., a unit of General Electric Co. (GE), has agreed to provide $10 million debtor-in-possession financing.
In a press release Thursday, the broadband provider said the DIP financing will supplement cash flow and allow it to continue serving customers and paying employees and creditors while it restructures.
Additionally, Viasource has retained the LoftusGroup LLC, a turnaround consulting firm, to assist management through the Chapter 11 process.
Shares of Viasource were halted for news early Thursday, after closed at 14 cents Wednesday.
Nasdaq Changes Viasource Halt Status, Requests More Info
WASHINGTON -- The Nasdaq National Market System changed the halt status in Viasource Communications Inc. (VVVV) to "additional information requested."
Earlier Thursday, trading in Viasource was halted at 8:35 a.m. EST for news pending at 14 cents.
Nasdaq said in a press release Thursday, trading in the company will remain halted until Viasource has "fully satisfied" Nasdaq's request for additional information.
Viasource earlier voluntarily filed for reorganization under Chapter 11.
As reported, Viasource's principal lender GE Capital Corp., a unit of General Electric Co. (GE), agreed to provide $10 million in debtor-in-posession financing.
Viasource, which provides broadband video, voice and data technologies, said the DIP financing will supplement cash flow and allow it to continue serving customers.
A Viasource representative couldn't immediately be reached for additional comment.
On Wednesday, shares of Viasource closed at 14 cents, down 2 cents, or 12.5%.
Shares traded as low as 6 cents on Sept. 21; they reached a 52-week high of $3.38 in November 2000.
The company posted 2000 revenue of about $196 million. |
