Covad To File For Bankruptcy

August 7, 2001 9:31 AM

Another DSL provider in big trouble, Covad this time according to this Yahoo story. The company will file for bankruptcy protection by mid-August, and is talking with bondholders to get rid of a $1.4 billion debt. Thanks Chunks. The company will try to restructure in order to return to a positive cash flow. Covad follows Rhythms, Northpoint and other high speed internet providers that either went out of business or are under bankruptcy protection. Covad already had its fair share of problems (story)

Upon restructuring, Covad said it expects to pay out $283.3 million to bondholders. After the payout, Covad said it will have about $250 million of cash on a pro forma basis as of June 30, 2001, enough to run its business into early 2002. It said it expects to emerge from bankruptcy by January 2002.

Maarten Goldstein

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j3uk.

 reply
August 7, 2001 9:32 AM

Darn!
What happened the new economy
- Seagram
  
   reply
  August 7, 2001 9:33 AM
  
  t's the new new economy
- klerck
  
   reply
  August 7, 2001 9:42 AM
  
  It's down the toilet
- BadRespawn
  
   reply
  August 7, 2001 3:29 PM
  
  this is it man, this is it. it's not good for everyone its just good for a few. that's what "good for the economy" means.