GBIX all I want to know, is what L2 is the guy I've bolded watching...not that I have any problem with .30...LOL it's in the bag..umm right?
Thursday December 27 4:10 PM ET
Globix in Bankruptcy Talks, Shares Sink
NEW YORK (Reuters) - Web hosting company Globix Corp. (Nasdaq:GBIX - news) said on Thursday that it is in bankruptcy discussions with an informal committee of its bondholders, sending its shares plunging 98 percent to a record low of a penny.
Globix said the discussions with the bondholders involve the company's plans for reorganization through a prepackaged bankruptcy proceeding aimed at significantly reducing the company's debt. The informal committee of bondholders represents about 48 percent of the company's outstanding $600 million of 12-1/2 percent senior notes.
Globix, which reported that its fourth quarter net loss more than doubled, said it also is in similar discussions with its preferred stockholders.
Following the announcement, Standard & Poor's lowered its corporate credit and senior unsecured note rating on the company to a double 'C' from a triple 'C.' The outlook is negative.
Shares of Globix fell to 1 cent, before paring losses to close at 30 cents, down 63.8 percent, on the Nasdaq. The shares had traded in a 52-week range as high as $8.75 and as low as 41 cents.
Reporting its fourth quarter financial results, Globix said its net loss widened to 73.6 million, or $1.89 per share, compared with a loss of $30.1 million, or 81 cents per share, in the same quarter last year.
Revenue of $25.0 million for the quarter ended Sept. 30 was down slightly from $25.9 million last year, but Globix said its results were adversely affected by a $3.5 million write-off of network assets impaired by the financial viability of a supplier and a $4.0 million increase in bad debt expense.
``We do not believe we will meet the fiscal 2002 guidance previously provided,'' said Chief Executive Officer Peter Herzig. ``In light of ongoing discussions with our bondholders, we expect to provide new guidance when we release our financial results for the first quarter ended December 31, 2001.'' |
