ALERT: NorthPoint files Chapter 11( old news - 10:24PM Tuesday Jan 16 2001) tags: clec · trouble After passing what the market thought might be D-day a few days ago without news, NorthPoint has filed Chapter 11. NPNT announcement. It intends to seek sale or partnership. • Although you should check with your ISP, the info we have is that NorthPoint will continue to install new lines... • Shares will be suspended upon open tomorrow, and will stay that way for weeks until the mess is resolved. • NorthPoint existing customers should have continued service. • Chapter 11 may make NorthPoint a better acquisition target. • The lawsuit against verizon is "seen as an asset". Media/Analyst Conference Call Transcript TERRY MCGOVERN: Welcome to NorthPoint Communications' conference call. With me today is Liz Fetter, President and CEO. Before we begin today's call, I would like to draw to your attention to the fact that our remarks will contain certain forward-looking statements. By their nature, such predictive statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those estimates that are given today. I refer you to our most recent 10-K and 10-Q, which include a detailed explanation of those risks. With that, I would like to turn the call over to Liz FetterEiz ELIZABETH FETTER: Thank you, Terry and thank you for joining us today to discuss three very important issues affecting Northpoint Communications Group, Inc.: First, our filing for Chapter 11 bankruptcy protection; second, our securing a commitment of $38 million of Debtor in Possession financing; and third, the structured sale of the Company's business and assets. As you know, six weeks ago Verizon unexpectedly terminated its binding merger agreement with NorthPoint, which left us with a significant funding shortfall. In order to preserve our business, we have determined that we need protection from our creditors while we continue to look for a strategic partner. Since then, we have moved aggressively to lower our expenses and improve efficiencies, including: We have reduced our full time workforce by 19 percent; We are consolidating our employees from the corporate headquarters in San Francisco to our operations facilities in Emeryville, which will take place in the next 30 to 45 days; We have sold our interest in VersaPoint to Versatel for cash; and We have sold our stake in NorthPoint Canada to Call-Net Enterprises, Inc. for cash. Although we do not have immediate plans to further reduce our staff, we will continue to evaluate all aspects of our business. Having said what we have done to cut costs, I want to make it clear that we will not make any moves that will negatively affect the quality of our service to our partners or customers, which we have worked so hard to establish. We are also doing everything possible to retain and encourage our employees. (1) This afternoon, we filed for Chapter 11 protection with the U.S. Bankruptcy Court for the Northern District of California, San Francisco as part of our continuing effort to restructure and to strengthen NorthPoint's financial condition. We believe that filing will allow us to create a framework that will allow us to find a strategic partner in order to continue our business. (2) We have secured a commitment for up to $38 million of Debtor in Possession or "DIP" financing, which, in addition to our cash on hand we will use to continue day-to-day operations throughout the restructuring process. We expect $25 million of this financing commitment to be available shortly. The remaining $13 million will be made available upon the satisfaction of certain conditions. This DIP financing means that we have sufficient resources to meet our immediate operating requirements and take us through completing a structured sale of NorthPoint. Additionally, under the Bankruptcy Code, NorthPoint will receive immediate relief from liabilities accrued prior to our filing. The result of this "stay" will be a benefit to our cash flow situation. This will give us the ability to continue to compensate our employees and to pay for goods and services going forward. (3) We intend to find a strategic partner through a structured sale of the company's business and assets. A structured sale will provide a framework for the process in which we have already been engaged - finding a strategic partner. The structured sale procedures will provide for a period of time in which potential purchasers will be able to perform due diligence - or learn about the company - and a date on which offers will be due. Once the Company determines which offer is the most favorable, and the Court approves that offer, the parties will proceed to close the transaction. In the meantime, NorthPoint will continue with business as usual until the sale is completed. Our goal is to re-emerge from Chapter 11 as soon as possible with a strategic partner and on sound financial footing. By taking this action, we have given NorthPoint the time and resources we need to realistically restructure our business and build for a stronger future. Let me assure you that filing for Chapter 11 protection does not mean that NorthPoint has gone out of business. NorthPoint is continuing to provide outstanding service to our customers, pursue a successful outcome to the structured sale process and execute on a business plan that will allow us to optimize our resources. The purpose of our filing is to use the "breathing room" Chapter 11 provides to sign an agreement with a financially sound strategic partner who is interested in our world-class network, our skilled and dedicated employees and our attractive customer base. We expect to do just that. As soon as we receive court approval of our structured sale procedures (which we anticipate shortly), we will issue a press release with the details of those procedures. We appreciate the continued dedication and support of our employees and partners during this difficult period. I can assure you that every member of the NorthPoint Communications team is committed to the challenges that are in front of us -- challenges that will make us a stronger company.
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|
 acepoint
join:2000-11-04
Roslyn Heights, NY | OH CRAP I don't feel like reading this whole thing, so in short what does it mean? I have already had two companies, Grapevine and Phoenix bail on me.
--
napsteralternatives.net, mystocksuck.com | |
|  | 
Frostbite
join:2000-06-13
Framingham, MA
clubs: | Re: OH CRAP If the release can be believed, your line won't be arbitrarily shut down by Northpoint. Now, whether you have an ISP behind that line is another issue entirely.
--
=C= | |
| | 
justin
Australian
join:1999-05-28
Brooklyn, NY
Host:
IPv6
Business Connectiv..
Home/Office setup ..
Console/Handheld g..
Console Tech
| They have bridging finance to keep operating [read: paying their staff and bandwidth bills], while they figure out what to do (or who to get bought by).
Your ISP probably cannot switch you to another CLEC for now since your service, if it exists, maybe the property of NorthPoint and protected under Chapter 11.
This is all guesswork.. hey, we're in the same boat: both home and the dslr office are northpoint lines  | |
| | | 
TransitMan
Premium,MVM
join:2000-09-05
Dayton, OH
clubs: 
 ·RoadRunner Cable
 ·Time Warner VOIP
·Earthlink TrueVoice
|  Re: OH CRAP
said by justin:
Your ISP probably cannot switch you to another CLEC for now since your service, if it exists, maybe the property of NorthPoint and protected under Chapter 11.
This is all guesswork.. hey, we're in the same boat: both home and the dslr office are northpoint lines
Justin, you are essentially correct. The lines are leased by Northpoint from the Telco's, and as such are protected property under the Bankruptcy Laws. All leases and all property owned by Northpoint, et. al. are subject to all conditions imposed by the court. Therefore, no person or entity may remove or dispose of anything belonging to Northpoint unless so granted by the courts.
Northpoint cannot dispose of any property or services unless granted by the court.
In order for such things to occur, a motion must be filed in the court of record, stating the reasons why such action be allowed.
For now, everyone should be alright. It behooves those that have Northpoint as their CLEC to stay up to date on their situation and that of their service.
--
MINDSPRING ADSL @ 6860 ft. from CO. 1.5mb(down)/384kb(up) | |
| | | | 
lml2000
Whazzup
join:2000-08-17
Los Angeles, CA
·RoadRunner Cable
| Re: OH CRAP Yes, the lines that Northpoint leases are part of the bankruptcy estate, and thus are protected by US Bankruptcy laws, Chapter 11, and the rulings of the US Bankruptcy Court assigned to administer these proceedings. But it is important to note that it is the leasehold interest in the lines and not the lines themselves that are under protection of the US Bankruptcy Ct. The most important protection that Northpoint sought and accomplished by filing Ch. 11 is protection from any foreclosure upon its leasehold interest by any of the several incumbent carriers who are the single most important creditors unlikely to see a dime during the initial stages of these proceedings.
The purpose of a Chapter 11 proceeding is to allow a debtor to reorganize its financial affairs so it may continue to exist & operate its ongoing business while "holding off" creditors, secured and non-secured, while the reorganization takes place. It is in the interest of not only the debtor-in-possession (Northpoint), but also the long list of creditors, that Northpoint's leased lines continue to operate and generate income to the estate while undergoing a Chapter 11 reorganization.
Notwithstanding, you do raise a good point regarding the potential for "mischief" of Northpoint provisioned lines by the ILECs who will now not see revenues from their CLEC partner.
May clean lines be with us.
--
Regards,
lml | |
| | | | mdurkin
join:1999-08-11
San Bruno, CA
| I beg to differ that the bankruptcy has any real effect on whether or not an ISP could switch
customers away to another carrier. Note I said customers, not lines... at least here in Pacbell
land, there is no such thing as switching a line to another DLEC, you have to order a new one
through the other carrier and they order a new pair from Pacbell. I switched a bunch of customers from
Covad to NorthPoint a year ago and it was a royal pain. If it was possible to switch working pairs to other
DLECs, I'm sure NorthPoint could interfere and the bankruptcy court might mandate that that physical pair switches to other DLECs not happen, but otherwise...
Whether an ISP could switch customers depends on their contract with NorthPoint. Whether
an end user could ask to be switched depends on the EU's contract with their ISP, or what
their ISP wants to do so if they can do so without breaking their contract with NorthPoint.
The bankruptcy may give NP protection against the ILECs shutting down lines... note in that case
NP is the customer, not the vendor as it is with ISPs buying lines from NP. Same relationship
as Flashcom getting protection for their lines from their bankruptcy... Flashcom is the customer.
No bankruptcy court can make a customer continue to buy from a vendor in bankruptcy beyond
enforcing existing contracts.
Our end users are not NorthPoint's customers, they have no obligation at all to NorthPoint, their
obligation is to us as the ISP, and we know the details of our obligation to NP. But all that said,
unless the absolute end is clearly near, I don't think an ISP is going to want to go through the
major hassle and expense of switching all their existing lines, perhaps even having to swap out
some EU's equipment, especially if service continues to be pretty good, which is generally the case w/ NP.
Where to take them anyway?
Where you choose to put new line orders might be another story... Megapath can tell it.
I don't think NorthPoint lines are ever going to suddenly disappear. If they do, there'll be more
DSL ISP deaths from ISPs that were perfectly healthy other than to get caught up in the feared,
but hopefully unlikely, disaster. | |
| | bclbob
join:2000-06-23
Oak Park, IL
clubs: | They could always auction on eBay? what are the chances that people that have large co-location facilities might be interested in taking on a large pre-built network like NorthPoint? | |
| | | IAmTheEvilest
There Is Nothing Like A Restart
join:2001-01-03
Santa Barbara, CA
clubs:
| Re: OH CRAP It looks like a good time for Microsoft to walk in. Let them solve all our problems. Buy it Microsoft, buy Northpoint! Save our DSL lines and we will be eternally grateful and we will buy all your software. Save Northpoint, Microsoft, keep my MSN Highspeed account afloat.
Maybe Bill Gates might read this!
--
Pac Bell people are stupid, the support structure was designed by a idiot, and the training was written by a monkey. | |
| | | | 
JYoung
G L 2814
join:2000-06-13
Sherman Oaks, CA
| Re: OH CRAP Considering the reports I've been reading about MSN's implementation of DSL, you may want to reconsider that hope.
--
If you're wondering how he eats and breathes and other science facts, then repeat to yourself "it's just a show, I should really just relax" | |
| | | | 
jseymour8
join:2000-07-29
|
It looks like a good time for Microsoft to walk in. Let them solve all our problems.
ROFLMAO! "Solve all our problems?" Oh yeah, just what I want: my existing platform-independent, reliable DSL connection held hostage to Microsoft's tender mercies. NOT!
Buy it Microsoft, buy Northpoint! Save our DSL lines and we will be eternally grateful and we will buy all your software.
<sniff...> Hmmm... Do I smell a troll? 
Save Northpoint, Microsoft, keep my MSN Highspeed account afloat.
Gag. MSN. I think I'd rather Army Of Lusers. And I think seppuku before either.
Maybe Bill Gates might read this!
I'm sure he would be gratified. Unless... <sniff> <sniff...> I'd swear I smell a troll...
--
Jim Seymour & Karel the Computer Cat
Agents Provocateurs Extraordinaire
Note new address | |
| | | | Adminmike
join:2000-07-14
Watertown, MA
| It would be in Microsoft's interest to buy into North Point. ISP's will have the security to deploy their MSN and enterprise services more efficiently, not as a liability.
I agree North Point has solid business service and great customer relations. Whom ever buys in with North Point will gain solid footing in the Internet territory.
Mike | |
| | | | | Anon | "Pac Bell people are stupid, the support structure was designed by a idiot, and the training was written by a monkey." - Oh maaaaaan you're funny! Thanks for the good laugh | |
| | | Anon | Should have went with cable. Cablevision in New York is completly stable and a better product! And they do offer it for business now! | |
| bmk57
join:2000-08-28
New York, NY | I guess their skyrocketing stock... is about to come plummeting back down to earth.
It doesn't seem like many people were fooled... | |
| | 
worthless-stock
@mcneiltech.com
| Stockholders are not smiling I posted an earlier remark about the worthless stock of NorthPoint and Covad. The DSL market is about to go through that horrible Capitalistic phase, "shakeout". The Teleco's and the Cable companies will rule in 2001. I urge everyone to take stock, literally, of their DSL provider and prepare for the worst. The Business analysts had been predicting failure in the Broadband arena. Their dire predictions are now materializing. It would be prudent for anyone who is contemplating broadband to purchase the service from either the Teleco, the Cable companies or a financially strong ISP (AOL, Earthlink, etc). | |
| | | 
sporkme
drop the crantini and move it, sister
Premium,MVM
join:2000-07-01
Morristown, NJ
·Optimum Online
| Re: Stockholders are not smiling said by worthless-stock:
= The Business analysts had been predicting failure in the Broadband arena. Their dire predictions are now materializing. It would be prudent for anyone who is contemplating broadband to purchase the service from either the Teleco, the Cable companies or a financially strong ISP (AOL, Earthlink, etc).
Analysts shmanysts. Yeah, the market stinks, but it's only because most Wall Street types are lazy gluttons who listen to drivel from even lazier uneducated "analysts".
No, being a DCLEC is not the BEST business plan, but it is not that damn bad. Covad minus consumer lines could truly have potential. I'm sure way back when there were folks thinking that running copper pairs back to people's houses so they could talk to each other was a really stupid idea given the costs of labor and R&D.
With proper management and funding, the DCLEC model is not entirely screwy.
C | |
| 
stray
join:2000-01-16
Warren, NJ
| Oh my! What a surprise! NorthPoint (and other DSL CLECs) always had such an excellent business model.
1.) Nothing really proprietary in their product.
2.) Their main supplier is their main competitor (ILECs)
3.) They don't collect revenues from customers, but instead, allow 3rd parties of sometimes dubious financial strength to manage all aspects of the customer relationship.
4.) The only possible competitive advantage they have is price cutting.
5.) They are unable to inform customers whether they can deliver their product until months after the customers have ordered (and possibly committed to a long term contract, preventing those customers from signing with a competitor for the waiting interval)
6.) Despite being in the information technology business, they can't manage their own customer database for months on end.
I'm sure this list could be extended..... What the heck were these guys (and gals) thinking when they cooked up their business plan! | |
| |
sporkme
drop the crantini and move it, sister
Premium,MVM
join:2000-07-01
Morristown, NJ | Re: Oh my! What a surprise! About five of those points could be applied to such folks as Sprint and MCI back in the early days of LD competition. Stretch it a bit, and you can count 6.
C | |
| | |
stray
join:2000-01-16
Warren, NJ
| Re: Oh my! What a surprise! Good point sporkme, but there are a number of differences. Sprint and MCI weren't battling a "difficult" technology; DSL is inherently limited in its reach and reach vs. speed. A significant portion of the potential customer base is simply unprofitable to install because of the ILECs' copper plant.
Sprint and MCI were converting a competitor's customers, not recruiting first adopters. Sprint and MCI made their move at a time where government regulators and the courts were willing to break the monopoly link between local and long distance incumbents, something that today's "soft money" politics prevents in the DSL arena.
Even so, Sprint and MCI survived those days by the skin of their teeth. I certainly hope that the DSL CLECs find a way out of the hole they're in. However, I'm not taking that bet without serious odds. | |
| | | dbarc
join:2000-01-22
Fort Wayne, IN
| said by sporkme:
About five of those points could be applied to such folks as Sprint and MCI back in the early days of LD competition. Stretch it a bit, and you can count 6.
C
There were, however, some significant differences, which increased along the way as well.
(1) Sprint started out as SP Communications (Southern Pacific, as in the railroad). They had significant communications facilities at the start which were underutilized and they used long distance to receive revenue on the already existing properties.
(2) They initially didn't go 'global', the cities you could call from were limited by dialing a local number then account codes then the called party number, also in limited areas (again keeping the traffic over their facilities where possible). It was later they started buying access through other (like T) facilities. Initially, their 'calling areas' both the 'from' and 'to' were limited.
(3) After the ma bell breakup, their interconnections with local telco's were NOT forcing them into agreements with competitors. The rbocs didn't compete in ld and couldn't. Though the connection agreements were not of the same 'class' as ATT, so things like billing for non-completed calls (if you left it ring too long, etc) were often the case.
(4) Their expansion didn't come initially from 0 to total debt for infrastructure. Again, they had customers (generally just businesses) as they built out.
(5) They continued to be part of Southern Pacific for quite some time, a company that did have its own source of revenues, not relying on only the ld for it's income streams. That also went on for some time until they were eventually sold off along with the communications facilities.
(6) As someone else said, ATT was also pretty much under the gun on the competition area as well. ATT wasn't up against an FCC that did nothing, but had to take it's marching orders from Judge Greene , the judge that presided over the ATT breakup AND oversaw the situation for a number of years. It was the court not the FCC that kept an eye on insuring competition, and IIRC, he kept a VERY close eye on things. | |
| | | | 
OCNBLUE
Dazed
Premium
join:2000-11-07
Dallas
| Re: Oh my! What a surprise! Sprint also used Southern Pacific's Right of Way to lay their fiber optic network so they could expand faster and gain more market share. (Seems strange that Sprint beat all other carriers to the first 100% fiber network!)
My point on this is Sprint owned the network and was able to make changes immediately. The issue with CLEC's is slow turn around time on any issue. Those of you who work in telecom know what I mean. For those of you who do not, let me give you an idea.
Your DSL is down. You call your vendor who realizes the issue is on the local side. Your vendor must issue a trouble ticket or maybe even a change order to resolve the issue. Then, the ILEC gets the order, finds two misprints on the order and rejects the change order or does not see a problem with the DSL line and closes the trouble ticket. So essentially, your vendor is back to square one. This can be a vicious cycle. | |
| | | | 
linflas
join:1999-08-18
Manassas, VA
 ·Verizon FIOS
| I had a friend that had a drafting job with a small company in College Park, MD called MCI in 1974. From what I understood then they were constructing microwave towers for companies to be able to communicate with one another hence Microwave Communications Inc. Never really gave this much thought until the 80's when out of nowhere we started hearing about MCI and long distance. At that time my friend recalled in some dim part of his mind that he had been given some stock when he left there. Needless to say it had turned into a nice little chunk of change, nothing life altering but certainly a real nice surprise. It is interesting to see what has become of these various companies over the years. | |
| | | |
sporkme
drop the crantini and move it, sister
Premium,MVM
join:2000-07-01
Morristown, NJ
·Optimum Online
| Howdy Stray and dbarc,
I must agree with you on this, but there are some similarities that make me think that at least Covad will survive. Perhaps all this turmoil will cause Covad to think a bit "smarter" in how they do things. Perhaps they'll dump some deadwood along the way. All the better. I can tell you that since the first layoffs, our service (from the ISP side) has actually IMPROVED. Strange, but true. We've been getting better resolution times on TTs, and now have a human being that can answer questions that do not have standard answers.
C | |
| | | | | 
Kangaroo8
join:2000-08-11
Peoria, AZ
clubs:
| Re: Oh my! What a surprise! Hehe, I think the deadwood already dumped them. The DLECs should sue for theft of services or file criminal charges for conspiracy to commit fraud. Many of these ISPs (PSN comes to mind) had NO intent to repay the debt they incurred. They used that debt to gather more money from subs, who they intended to defraud. Kind of a Ponzi scheme. | |
| | | | | |
stray
join:2000-01-16
Warren, NJ | Re: Oh my! What a surprise! said by Kangaroo:
The DLECs should sue for theft of services or file criminal charges for conspiracy to commit fraud.
And the US should send the bill for the Gulf War to Saddam! Wishful thinking.... | |
| |
Kangaroo8
join:2000-08-11
Peoria, AZ
clubs:
| said by stray:
NorthPoint (and other DSL CLECs) always had such an excellent business model.
1.) Nothing really proprietary in their product.
They didn't understand value-add
said by stray:
2.) Their main supplier is their main competitor (ILECs)
That's like Sears buying from Sharper Image at catalog prices and trying to resell the same thing.
said by stray:
3.) They don't collect revenues from customers, but instead, allow 3rd parties of sometimes dubious financial strength to manage all aspects of the customer relationship.
Like coming up with a great product, but letting your evil idiot brother-in-law do the selling. Right after his prison sentence is done.
said by stray:
4.) The only possible competitive advantage they have is price cutting.
See number one above. You CANNOT three-step a commodity, someone always gets screwed (farm subsidies). When you think it is a commodity, you've lost (at least) half your margin.
said by stray:
5.) They are unable to inform customers whether they can deliver their product until months after the customers have ordered (and possibly committed to a long term contract, preventing those customers from signing with a competitor for the waiting interval)
Yes, well this one mainly falls on the uninformed. There was plenty of info out there to make an informed decision. I don't pity folk who get rooked by grifters either. Hard, but life ain't for the stupid.
said by stray:
6.) Despite being in the information technology business, they can't manage their own customer database for months on end.
Careful analysis reveals they were in the "set up the ball for the VC folk, sucker the foolish B'school teenagers into IPOing it for us before this house of cards is revealed for the complete fraud it is and get out with tons of cash" business, not a technology business. Anyone watch that show "Bull" or "The Street"? These 'wizkids' were still in high-school when the last bear market was extant.
said by stray:
I'm sure this list could be extended..... What the heck were these guys (and gals) thinking when they cooked up their business plan!
See number six.
--
I'm your huckleberry. . .that's just my game
[text was edited by author 2001-01-17 01:18:39] | |
| | Anon | 30 Days and Name Your Price No automatic stay for postpetition obligations. Postpetition obligations must be paid on current terms. ILECs will ask for deposits upfront for the monthly line charges. $25 million will last 30-45 days then its auction time at the court for the "open bid procedures".
Want a used DSLAM or some CO space?
====================================================
It all began with the DSL Doomsday Device...
"My conclusion was that this idea was not a practical deterrent, for reasons which, at this moment, must be all too obvious. It is not only possible - it is essential. That is the whole idea of this machine, you know. Deterrence is the art of producing in the mind of the enemy the fear to attack. And so, because of the automated and irrevocable decision-making process which rules out human meddling, the Doomsday Machine is terrifying. It's simple to understand. And completely credible and convincing." | |
| | 
fuzee3
join:2000-10-06
Bronx, NY | bleh "NorthPoint existing customers should have continued service."
i have a pending installation from northpoint coming on the 22nd. they will come won't they? ;x that's all i'm worry about. | |
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chris
focus
Premium
join:2000-08-13
Middletown, CT |  Re: bleh
| |
| | | |
fuzee3
join:2000-10-06
Bronx, NY
| Re: bleh i'm not worry about it because it might be good for me. end the 1 year contract with msn. ;x but all i want is to try msn for atleast 1 or 2 weeks to see if it's good or not. since the day i cancelled dsl from verizon, it have been hell for me. hate going online using dialup!L~K@U(*~&#()~ | |
| | 
cranialwiz
join:2000-10-03
Wayne, PA
| Re: 30 Days and Name Your Price This is a free market economy in the US.
If Northpoint hadn't allowed Flashcom to run up such a huge debt that they claim called an initial cash shortfall (as they claim), Verizon would not have had the grounds to cancell their agreement in the first place.
I for one place the blame squarely on Northpoint's shoulders. Poorly managed businesses can and do fail all the time.
I would expect the outcome fo Northpoint's chapter 11 is that the business will experience a court-ordered sale of pennies on the dollar to a group who has less grandiose plans and will provide their partnered ISP's with a bit of guidance and the wisdom to cut their losses when an ISP fails to meet their finacial responibilities rather than turn their heads and just count how many DSL lines they have installed.
IMHO that is. | |
| 
mdntblu
join:1999-09-30
Corona, CA
| Telocity I guess Telocity is going to be getting more overloaded now if they get all the Northpoint users. I know Telocity hooks people up on Northpoint if the customer can't get a Phone Company but now I guess they will only have Rhythms and Phone Companies....
This is all too crazy for me.
--
Brad
»www.fscigroup.com | |
| nascar24
join:2000-12-20
Sterling Heights, MI
| What happened to the other thread from today?? Some guy on here had just put his life savings into them in the last few weeks and he was very happy they were going up and he was making money and now he is left with Nothing just that quick! Several hours later! Anything internet right now is a toss up I had thought about putting a few dollars into them myself but this kind of stuff makes me stay away from the stock market.
[text was edited by author 2001-01-16 21:41:19] | |
| | bmk57
join:2000-08-28
New York, NY | Re: What happened to the other thread from today?? Lets all hope he catches this thread before the opening bell tomorrow. | |
| |
justin
Australian
join:1999-05-28
Brooklyn, NY
Host:
IPv6
Business Connectiv..
Home/Office setup ..
Console/Handheld g..
Console Tech
| Stock could be worth nothing: if there is an eventual fire sale, the corporate bond holders get first dibs on the proceeds and the stockholders get nothing.
However, if they are acquired or come out of Chapter 11 with a partner, the equity could still have some value.. who knows.. one thing for sure, NP management probably have a strong self-interest to protect here, as they all must be very long NPNT stock Its not going back to $10, but it might come out the other end worth a buck. | |
| | | 
Jestocost
The Poodle Bites.
join:2000-10-19
Saint Louis, MO
| Re: What happened to the other thread from today?? It's also not uncommon for management to broker bonus deals tied to the return (cents on the dollar) provided to creditors and equity holders through the bankruptcy proceedings. This can help these poor folks soothe the sting of seeing stock they got at a discount (or for free) become worthless!
--
"Watch out where the huskies go and don't you eat that yellow snow." -- FZ | |
| |
Kangaroo8
join:2000-08-11
Peoria, AZ
clubs:
| Well, that's the price of poker. Or, that's evolution in action. Or, a fool and his money are soon parted. Yawn. He sounds like these morons out here in Sun City. Year after year they are warned about scam artists, and year after year they are taken because of their own greed and/or stupidity. Can't pity them, just mourn that they already passed on all those 'moron' genes.
Life savings in NorthPoint. Snort. | |
| 
willardk
Mod 2000-03
join:1999-12-02
Jackson Heights, NY | taking bets How much you wanna bet Verizon scoops them up at a bargain basement price....that will give them what they wanted to begin with and presto chango no more lawsuit.
Will | |
| |
See 13 replies to this post | |
dobie0
join:2000-06-22
Englewood, CO | Microsoft Wasn't there a post about Microsoft buying northpoint a while back? It wouldn't very look good for MSN's dsl service to go under. | |
| |
See 13 replies to this post | |
bmk57
join:2000-08-28
New York, NY
|  Out of Options
Long live competition (the king, on the other hand, appears to be doing very well)... | |
| 
lemondrop
Defender Of Mindless Frivolity
join:2000-08-03
Virginia Beach, VA
| Verizon says no thanks | |
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See 7 replies to this post | |
bandwidthlost
join:2000-11-21
Los Angeles, CA
| Is Covad next?
Teleco's and Cable are tightening their grip on the market.
Since Teleco's and Cable do not rely solely on revenue from broadband, they are in a better financial position. It is ugly out there. I do hope those who lose jobs will be able to bounce back. | |
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Kangaroo8
join:2000-08-11
Peoria, AZ
clubs: | Re: Is Covad next? Actually, for the telcos and cable operators, broadband is a huge cash cow. They are just spending money now to squeeze the competitors a bit, as much as the '96 Comms Act will allow. | |
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stray
join:2000-01-16
Warren, NJ
| Re: Is Covad next? said by Kangaroo:
Actually, for the telcos and cable operators, broadband is a huge cash cow. They are just spending money now to squeeze the competitors a bit, as much as the '96 Comms Act will allow.
And it ain't much of a squeeze. Telco and cable ops own the equipment, own the wires, and own the customers. Offering their existing customers DSL isn't much of an effort (or expense), relative to the hassle and cost that a CLEC must suffer. For the telcos and cable guys, it's like adding caller id or HBO to a customer's acct. The only miracle for NP, Covad, and Rhythms is that the telcos have done such a wretched job of implementing DSL. | |
| | | Anon | Will Uncle Sam intervene like he did for Chrysler many years ago? Or does he think that it would just be throwing good money after bad. Are private investor's going to get cold feet and start pulling their funding from the small DSL upstarts? Stay tuned for the next DSL Debacle. | |
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dsl_boy
join:2000-11-21
| Re: Is Covad next? said by Privateer:
Will Uncle Sam intervene like he did for Chrysler many years ago?
No
said by Privateer:
re private investor's going to get cold feet and start pulling their funding from the small DSL upstarts?
It's already happened. | |
| Michael Albright
join:1999-11-16
Lakewood, OH
| E-Mail from NP to Partners Here's the E-Mail we got from them.
Verizon would be smart to pick them up at the new "Bargain Basement" pricing!
Dear Partner:
As you can see from the attached Press Release, NorthPoint has filed for protection under Chapter 11 of the U.S. Bankruptcy Code. Verizon’s unexpected withdrawal from our merger left us with a funding shortfall.
Let me assure you that NorthPoint is not going out of business. The purpose of Chapter 11 is to preserve and strengthen our business so that we can continue to compete successfully with a strategic partner. We expect to do just that. During the reorganization, NorthPoint will continue with business as usual, which means operating our nationwide network, and taking orders for new service. In fact, we expect to continue with the improvements we have made in our operation over the past several months.
The purpose of our Chapter 11 filing is to create a framework to allow us to find a strategic partner in order to continue our business. We intend to do that through an open auction process. An open auction process is not the same as what often comes to mind when the word “auction” is used. Instead, the auction procedures merely provide a structure to the process we have already been engaged in – finding a strategic partner in order to continue doing business.
Our goal is to emerge from Chapter 11 as soon as possible with a strategic partner and on sound financial footing. By taking this action, we have given NorthPoint the time and resources we need to realistically restructure our business and build for a stronger future.
If you have any questions about this recent news, please contact your account team.
Sincerely,
Allan Jaffe
--
Knowledge is power. | |
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mdntblu
join:1999-09-30
Corona, CA
| Re: Just like Optel My apt complex uses Optel also and 3 years ago when I moved here they told me that I could get cablemodem but never seemed to get it. So I ended up getting ADSL through Pacific Bell and get around 900-1300 speeds out of it most of the time. So I guess it's probably better then that Optel company. Optel has a website at http://www.optelinc.com if you wanted to check out their "awesome designed" website - hehehe. Looks like something designed in 1994 if you ask me. Well good luck on your broadband endevours.
--
Brad
»www.fscigroup.com | |
| 
doublec16
join:1999-08-20
Jersey City, NJ
|  I don't get it
Someone please explain.
--
Check out my site.
CRUNCH or FOLD for science. | |
| | sashka
join:2000-02-01
Butler, NJ
| Re: I don't get it as far as I understand, when company files Chapter 11, they ask for help from others (?) to help reorganize company and this company should be brought by other company (Verizon, Microsoft, or, even, Covad?). While company in Chapter 11, it works as it worked before, etc..
but I might be wrong.. | |
| | 
Brendan
Warr Guitar is here
join:2000-07-14
Littleton, CO
| It gets creditors off their back for awhile- basically buys them time to get their.. stuff together. They usually lay off enough people and close remote locations long enough to pay the creditors off, then emerge from Chapter 11. This can take several years.
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*Pissed In Colorado* | |
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doublec16
join:1999-08-20
Jersey City, NJ
| Re: I don't get it
--
Check out my site.
CRUNCH or FOLD for science. | |
| |
Jestocost
The Poodle Bites.
join:2000-10-19
Saint Louis, MO
| Chapter 11 bankruptcy is technically a "reorganization" procedure, not a liquidation process like some other types of bankruptcy. Under court supervision, companies are given the freedom to do things that they wouldn't be able to do out of bankruptcy.
For example, a retailer may be able to break leases in order to close unprofitable stores and save money. Outside of bankruptcy, the company wouldn't be able to break those leases without paying some kind of penalty.
As has been said, Chapter 11 also gives the company some "breathing room" by halting the collection of debts that were outstanding at the time of the filing. This relieves the company of paying those debts and allows them to use their cash in other ways, presumably to strengthen the company's operations.
During the Chapter 11 process, the company then works out a plan of reorganization that settles any outstanding claims. There's a pecking order that says who gets their cut first, which goes (if I recall correctly): administrative claims, like legal and accounting bills (funny how the lawyers always get paid, isn't it?); secured creditors (any mortgage holders, some lenders and the like); unsecured creditors (most vendors and suppliers, unless they were smart enough to secure their claims); and, finally, equity holders (the poor saps who just own the stock).
--
"Watch out where the huskies go and don't you eat that yellow snow." -- FZ | |
|
Twallack
@sfna.com
| Using NorthPoint? Hi. I'm a journalist just curious whether NorthPoint customers -- especially in the Bay Area -- are worried about the bankruptcy. How's the service been?
If we can use your comments and name, send me an e-mail at twallack@sfchronicle.com. Or give me a call at 415-746-2815.
Best,
Todd Wallack
San Francisco Chronicle. | |
| 
jasonzzz
join:2000-08-19
San Diego, CA | Copper Mountain Shoot, This isn't going to look pretty for Copper Mountain... Doesn't NP sole-source from CMTN? | |
| mavidal
join:2001-01-14
Miami, FL
| This will make you wonder I'm an ex PSN customer with DSL by Northpoint. I figured by the 17th my line would be dead. It is still running though now using MSN. Telocity has still to follow up with me.
The gods must like me for some reason!
Mike Vidal
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cantrememeber
@216.101.x.x | Flashcom Customers What about Flashcom customers that got transferred to Northpoint? Anybody real upset there? I mean, now both are going under. | |
| | | Anon | Re: Flashcom Customers Flashcom\Northpoint SUCK!!!
Fraud,Rip off,unauthorized & BIKING & billing X-Customers.
Started in Jan.,Feb.2001.
Can not reach them at all!
Lines always busy, day & night.
Ya,come on, their phone are off the hook, that's why!
They think I am another SUCKER, & HOPE I still will pay them for services I no longer use!!!
My creadit card told me on the phone,"You must try & reach
them"!
Ya, I tried, & called Visa 5 times now. & told them I REFUSE To PAY THEM.
Now where do I turn to?
Ya, I read other people are also getting RIPPED OFF too!
Phillie X customers of Flashcom, lets hear from you, OK? | |
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I'm praying, crossing my fingers and toes, burning scented candles, and the whole bit that they come out Saturday to hook the router to my line. (OK, so I exaggerated a bit- I'm not burning scented candles. 
)