WINfirst Files for Bankruptcy
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Denver-based fiber optic networker WINfirst has filed for federal Chapter 11 bankruptcy protection, listing assets exceeding $100 million and debts in the range of $10 million and $50 million.
Western Integrated Networks (WIN), which provides high-speed Internet, cable TV and telephone services in some U.S cities, blamed the bankruptcy filing on the "collapse of the equity and debt financial markets."
"This is strictly a financial restructure. The operating dynamics of the business work. We fully expect to weather the financial market conditions and emerge from Chapter 11 positioned to move forward successfully," WINfirst CEO Frank Casazza said.
The company had implemented belt-tightening measures in recent months, which included layoffs and other budget cuts and officials say the inability to secure a financing deal with unnamed primary investors forced the company to seek federal bankruptcy protection.
In a statement, WINfirst said there would be no service interruptions to existing customers in Sacramento but there was no information on what would happen in the other two markets. "WINfirst will finish all construction in progress and continue to sell and activate new customers on the existing network," the company said.
Launched in 1999, the privately-held WINfirst originally planned to build a fiber-to-the home residential network using fiber-optic technology in conjunction with Ethernet networking standards that would serve about eight U.S cities. But, because of the financial struggles, the expansion of that network was stopped after about 25 percent was completed.
"Immediate steps WINfirst will take include implementing a plan to conserve capital by scaling back new construction, evaluating all aspects of its business plan, and actively pursuing new investors," the company said.