Universal Broadband Networks files for bankruptcy
WEDNESDAY, NOVEMBER 01, 2000 3:45 AM
- Reuters
IRVINE, Calif., Nov 1 (Reuters) - Telecommunications firm Universal Broadband Networks Inc. (NASDAQ NM:UBNT) said Wednesday it filed for Chapter 11 bankruptcy protection under the pressure of looming debt.
The Irvine, Calif.-based company, whose stock last traded at 5/16 on the Nasdaq, far below its March high of $20-1/4, cited depressed market conditions and its inability to secure new financing from vendors as reasons for the bankruptcy petition.
"Unfortunately, Chapter 11 is the only alternative at the present time," Michael Sternberg, Universal Broadband Networks' chief executive and president, said in a statement. "The burden of current indebtedness has compelled the companies to seek protection under the Bankruptcy Code."
The company and four its subsidiaries filed voluntary petitions in the United States Bankruptcy Court for the Central District of California, the company said.
"Depressed market conditions in the telecommunications equipment and services industries have prevented us from completing essential vendor financing arrangements," Sternberg said.
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