North American Network Operators Group
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Re: Covad, Chapter 11 !

  • From: Wayne E. Bouchard
  • Date: Wed Aug 08 11:00:51 2001 
And just in case anyone is curious, this is a potential scenario for
many struggling telco startups. (Bankruptcy to clear debt and
eliminate interest payments so there there is at least a CHANCE to
pull ahead.)

-Wayne

On Wed, Aug 08, 2001 at 10:45:15AM -0400, Nathan Stratton wrote:
> 
> On Wed, 8 Aug 2001, Smith, Rick wrote:
> 
> > Just found this...
> >
> > http://www.internetweek.com/story/INW20010807S0008
> 
> As someone who has 14 DS3s into their network I think this is very good
> news. Covad was crushed with $160 million a year payments on $1.3 billion
> in debt. That now all gets converted into common stock (sucks for common
> shareholders) and everything is reset. This lowers cash needed to break
> even down to $200 million from $400 million.
> 
> -Nathan