Allegiance Files for Chapter 11
The filing comes a day after approximately 1,000 Allegiance customers’ Websites (ours included) were taken down for an entire business day. A construction accident in Boston cut through four OC48 links on Allegiance’s network (see Big Dig KOs Light Reading).
Allegiance listed $1.44 billion of assets and $1.4 billion of debts in its filing with the U.S. Bankruptcy Court for the Southern District of New York. More than three dozen affiliates also sought court protection, according to the filing.
Allegiance shares closed Wednesday on the Nasdaq at $0.29, down 6.4 cents, or 18.1 percent. After-hours trading of the stock was halted.
The company did not return calls for comment by press time.
— Jo Maitland, Senior Editor, Boardwatch