North American Network Operators Group Date Prev | Date Next | Date Index | Thread Index | Author Index | Historical FWD: Web backbone provider Priori mulls bankruptcy
>From Ziff-Davis newswire. Another one bites the dust? Comments? > > --------------------------------------------------------------------- > > This article is from ZDNN (http://www.zdnet.com/zdnn/). > Visit this page on the Web at: > http://www.zdnet.com/zdnn/stories/zdnn_smgraph_display/0,3441,2127660,00.html > > --------------------------------------------------------------------- > > By Ben Elgin, > [email protected] Reseller > August 12, 1998 5:47 PM PT > [IMAGE] > > Less than one year after Priori Networks Inc. opened its doors for > business, the national Internet backbone provider is on the brink of > bankruptcy, [email protected] Reseller has learned. > > All the company's employees have been laid off and the network > operation center is no longer functional, according to a source at > Priori. Temporary transit arrangements have been made for Priori > customers in the Portland, Ore., Chicago, Washington DC, and Palo > Alto, Calif. areas, but other customers may be left to fend for > themselves, the source added. > > Priori president and CEO Robert Shearing says severe financial > shortfalls will force Priori to file for Chapter Seven bankruptcy > within several days unless an acquisition offer is made. Under the > rules of Chapter Seven, the company will be forced to liquidate its > assets to pay off creditors. > > "It's not looking good -- we will have a final decision in the next > couple of days," concedes Shearing. > > The company, which launched last October, specialized in selling > backbone access to Internet service providers, usually at a lower cost > than its telecommunications competitors. > > High hopes dashed > With points of presence in Atlanta; Boston; Chicago; Dallas; Denver; > Los Angeles; Palo Alto, Calif.; Portland, Ore.; Seattle and > Washington, D.C., Priori executives once had high hopes for success in > the ISP backbone vertical market. > > But, with a new breed of well-funded backbone providers entering the > market, many industry observers believe Priori was a dollar short and > a year too late. > > "They came in when the window of opportunity was closing and they made > several key mistakes. Perhaps the biggest error was focusing too > heavily on engineering while ignoring the sales side," says ISP > consultant Michael Dillon, who worked for Priori Networks for six > months. > > --------------------------------------------------------------------- > > Copyright (c) 1998 ZDNet. All rights reserved. Reproduction in whole > or in part in any form or medium without express written permission of > ZDNet is prohibited. ZDNet and the ZDNet logo are trademarks of > Ziff-Davis Inc. > ========================================================================== Eric Germann CCTec [email protected] Van Wert, OH 45891 http://www.cctec.com Ph: 419 968 2640 Fax: 419 968 2641 Network Design, Connectivity & System Integration Services A Microsoft Solution Provider
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