Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Making Money is Main Objective -- Ignore unavailable to you. Want to Upgrade?

To: Softechie who wrote (1402)	6/8/2001 12:16:25 PM
From: Softechie	Respond to of 2155

NEON Communications denies potential bankruptcy -------------------------------------------------------------------------------- NEW YORK, June 7 (Reuters) - Networking company NEON Communications Inc. on Thursday said it was not seeking bankruptcy protection after the issue was raised by a supplier and NEON's stock fell by about 16 percent. NEON shares were down 99 cents, or 16 percent, at $5.15 on the Nasdaq exchange, after earlier falling as low as $3.40. Privately held Fiber Optek said in a statement on Thursday that it was filing liens against NEON to confirm its position as a secured creditor, citing an April 12 filing by NEON with the Securities Exchange Commission that said the company might have to file for bankruptcy if it did not obtain additional financing. NEON, which called the Fiber Optek release "materially misleading," said it had recently obtained $28 million in financing. The company added that Fiber Optek's liens are on a "small portion" of NEON's network, and that it intends to seek damages against Fiber Optek. Neither company returned calls seeking comment. Westborough, Massachusetts-based NEON said the liens were an attempt "to pressure NEON to settle disputed contractual claims" after NEON terminated its agreement with Wappingers Falls, New York-based Fiber Optek, which designs and installs fiber optic networks. The NEON SEC filing, a shelf registration to sell up to $25 million in stock, securities and warrants, reads, "We have experienced significant net losses throughout our history, and are currently experiencing cash flow problems. As a result, we will need additional financing in order to fund our operations and carry out our business plan, and if we are unable to obtain this financing, our business will be severely harmed and we may be required to seek protection from our creditors under the federal bankruptcy laws." REUTERS Rtr 18:02 06-07-01