Exodus "locking down" customer gear due to bankruptcy?

Grant A. Kirkwood grant at virtical.net
Mon Oct 1 23:57:08 UTC 2001


"Christopher A. Woodfield" wrote:
> 
> 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.
> 
> 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.
> 
> -Chris

Having personal experience with a facilities-based providers'
bankruptcy, I can say that generally an asset management company becomes
involved, and from that point forward the company has very strict asset
tracking measures in place. Exodus will probably not limit what can be
removed, but they will surely extensively document the removal of
equipment (probably more carefully than before) ... which, at first
glance, might look as if they're trying to prohibit the removal of
equipment.

Grant

-- 
Grant A. Kirkwood - grant at virtical.net
Chief Technology Officer - Virtical Solutions, Inc.
http://www.virtical.net/



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