Exodus "locking down" customer gear due to bankruptcy?

Mon Oct 1 22:03:46 UTC 2001

> I've heard anecdotal evidence that Exodus has a clause buried in
> at least some of their contracts that effectively prohibits the customer
> from removing their equipment from their facilities in the event of
> bankruptcy. Not the customer filing Ch. 7/11, but EXODUS going bankrupt.
> Furthermore, it appears that as they have indeed filed Chapter 11, they are
> actively enforcing this, at least at their Northern Virginia facility.

I think you'd find that your anecdotal evidence is coming from sources who
don't read their contracts very carefully.  Unless _I_ am not reading
correctly, the clause to which you refer, at least in our contract with
Exodus, reads that either side can terminate the contract if the other
side enters voluntary bankrupcy proceedings.  (actual language sent in
private e-mail)

> Has anyone else heard of this or been affected by this? Exodus customers,
> can any of you look up your contracts and see if you can dig this up? I'm
> interested in hearing the exact language, if it is indeed a standard
> clause...I'm thinking there's no way that this could be enforceable,
> although it would probably take a TRO to get them to let customers claim
> their gear.

Perhaps your sources are confused by changed procedures; in Boston I've
seen signs posted that equipment can no longer be carried in or out via
the lobby area, and must traverse the shipping & receiving area, but no
evidence of customers being prevented from leaving; in fact, I'm pretty
certain that there's no such restriction being enforced.

While it may not have been your intent, this reads to me as "run away,
Exodus is trying to screw you!"  I sincerely doubt that this is the case,
and know that I, for one, will continue doing business with Exodus in the
hopes that they will come out of bankrupcy proceedings soon, and
continuing to provide some of the best colocation services out there.

Tim

ObDisclaimer: I'm in no way affiliated with Exodus other than by being a
customer.

-- 
Tim Wilde
twilde at dyndns.org
Systems Administrator
Dynamic DNS Network Services
http://www.dyndns.org/