NetRail derailed
Atlanta Business Chronicle - by Mary Jane Credeur
After burning through $77 million in venture capital, Internet backbone operator NetRail Inc. has filed for Chapter 11 bankruptcy protection in the Northern Georgia district of the United States Bankruptcy Court.
Chapter 11 allows for reorganization of finances while protecting a company from lawsuits by its creditors.
In court documents filed July 25, NetRail claims assets of $32.6 million and liabilities of $37.2 million.
Repeated calls to NetRail officials were not returned. NetRail's attorney, J. Robert Williamson, was unable to be reached for comment.
During the summer of 2000, privately held NetRail received a $55 million infusion that Chief Financial Officer Eric Mattson predicted would last 18 months.
The money, Mattson said then, would fuel the company's growth to compete with global Internet companies, such as WorldCom Inc. (Nasdaq: WCOM), PSINet Inc. (Nasdaq: PSIX) and others that form the infrastructure for the Internet. In early June of this year, Ashburn, Va.-based PSINet filed for Chapter 11 bankruptcy protection for itself and 24 of its American subsidiaries.
NetRail and its larger competitors own the data centers that host Web sites and the fiber-optic networks that transport Internet traffic.
Internet service providers such as EarthLink Inc. (Nasdaq: ELNK) buy access to the Internet from NetRail and then resell Internet service and Web hosting to consumers and businesses.
NetRail claims between 100 and 199 creditors in bankruptcy filings.
Latest News |
Most Viewed Stories |
Most Emailed Stories |
