Picus Files for Bankruptcy Protection
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Hampton Roads, Va.-based Picus Communications, a player in the regional DSL market, Tuesday became the latest DSL provider to throw in the towel, filing for Chapter 11 bankruptcy protection.
Picus is following the now all-too-familiar trail left by companies like L.A. based Quentra Networks Inc., which filed for protection last Friday, and the four ISPS -- Flashcom Communications, Zyan Communications, Relay Point and FastPoint -- which took the same path on Dec. 12.
Picus intends to sell its non-core assets and operations -- including its dial-up ISP division -- and said it will reorganize in its core market in an attempt to make a come-back on the scene.
"Picus is aggressively pursuing funding options to enable it to execute this strategy, but the ultimate success of this undertaking is uncertain at this time," the company said in a press release Tuesday morning.
Picus said its primary obligation is to its customers and creditors, noting that it has a duty to ensure that its customers are not left stranded without a dial tone or the ability to contact emergency services. The company added that there is a possibility that its network could become non-operational while it seeks funding and advised customers to select another carrier.
"Our telephone customers...are urged to move to another carrier as soon as possible to avoid the chance of lost service during this process," the company said. "Cavalier Telephone and Stickdog Communications have agreed to convert customers at no fee; however, other telephone companies may be willing to do the same. Therefore, customers should call the carriers listed at the front of the White Pages to convert their telephone service."
But the company also said that in the interest of its creditors it will strive to preserve the operational status of its network and support systems to protect its asset value.
The telecommunications provider said it is currently negotiating the sale of its dial-up ISP division though it added that it intends to continue to provide the service during the process.