Covad, Chapter 11 !

Wed Aug 8 18:05:43 UTC 2001

I think the one exception to the rule in Covad's case is that Covad seems 
to have their reorg plan already in place and with the blessing of the 
majority, if not all, of their bondholders. I have no experience with 
bankruptcy law, but given the fact that the debt-retiring deal has been 
made, where is the need to file Chapter 11? To flush out the bondholders 
who haven't agreed to the stock-for-debt deal?

-C 

On Wed, Aug 08, 2001 at 08:41:07AM -0700, Roeland Meyer wrote:
> 
> > From: up at 3.am [mailto:up at 3.am]
> > Sent: Wednesday, August 08, 2001 7:57 AM
> > 
> > On Wed, 8 Aug 2001, deeann mikula wrote:
> > 
> > > On Wed, 8 Aug 2001, Smith, Rick wrote:
> > > 
> > > > Just found this...
> > > >
> > > > http://www.internetweek.com/story/INW20010807S0008
> > > 
> > > i read a similar article y'day, and that was the first that i had
> > > heard mention of rhythms going down.  either i was too busy 
> > pulling my
> > > hair out last month or they were really good about keeping it quiet.
> > > *sigh*
> > > 
> > > looks like verizon is gonna be the only xdsl provider left solvent
> > > when the dust settles.  how scary is that, and how predictable?
> > 
> > Although this may well ultimately prove true, people do realize that
> > filing for chapter 11 is not synonymous with going out of business,
> > right?
> 
> Show me one case, in the xDSL CLEC business where this has held true. Thus
> far, *every* one of them, that has filed CH11, has gone out of business
> within 30 days, as near as I can tell. The track record is pretty dismal.

-- 
---------------------------
Christopher A. Woodfield		rekoil at semihuman.com

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