360networks Files For Reorganization in Canada and The US
Vancouver, June 29 -- 360networks announced today that the company and several of its operating subsidiaries have filed for protection under the Companies' Creditors Arrangement Act (CCAA) in the Supreme Court of British Columbia.
The company's principal US subsidiary, 360networks (USA) Inc., and 22 of its affiliates concurrently filed for protection under Chapter 11 of the US Bankruptcy Code in the US Bankruptcy Court for the Southern District of New York. Where necessary, appropriate action is being taken in other jurisdictions to protect the company's assets.
The company and the subsidiaries covered by the filings currently have approximately $155 million of unrestricted cash, cash equivalents, short-term investments and marketable securities on hand. 360networks expects to use these funds to maintain service to existing customers in Canada and the US, and to complete key segments of its North American network.
360networks believes it will be able to complete its North American network using its cash and current backlog of contracted revenues. Further growth will depend on its ability to attract additional financing or strategic investment into the reorganized company.
"We are taking these steps to restructure our business and financial position in a difficult telecommunications environment," said Greg Maffei, president and chief executive officer of 360networks. "While very disappointing, we believe today's filings provide us the best opportunity to reorganize and operate our core business."
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