RealTime IT News

WebVan: A Bust For Shareholders

Webvan Group Inc., which is in the process of liquidating its assets under bankruptcy protection, disclosed on Monday that it doesn't expect to have enough cash to distribute any money to its shareholders.

After announcing its intentions to file for Chapter 11 on July 9, the Foster City, Calif.-based company began selling off assets last week.

On Monday, the company said it has already contacted over 60 potential parties and anticipates that several interested parties will submit offers by the Aug. 27 deadline.

However, in its statement, a company spokesman said "based on our preliminary analysis of the likely recoveries on our assets versus the expected claims against those assets, we do expect to have funds available for distribution to our unsecured creditors. We do not expect, however, to have any funds available for distribution to our equity holders."

The centerpiece of the assets being offered for sale is Webvan's technology platform, which is the company called an integrated e-commerce platform that is capable of supporting warehouse management and delivery operations. The company is also offering the HomeGrocer technology platform for sale.