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Has bought substantially all of the assets of InternetConnect in an auction supervised by the US Bankruptcy Court
January 7, 2002
SANTA CLARA, Calif. -- Covad Communications (OTCBB: COVD), the leading national broadband services provider utilizing digital subscriber line (DSL) technology, bought substantially all of the assets of InternetConnect in an auction supervised by the US Bankruptcy Court for the Central District of California. This purchase assures all InternetConnect customers on the Covad DSL network will be offered virtually uninterrupted broadband service for their business and residential use. The purchase price for the assets of InternetConnect, a Torrance, California-based Internet Service Provider (ISP) which has been in bankruptcy since May 2001, was $7.35 million. Covad did not assume any liabilities or obligations of InternetConnect but will fund any shortfall in operating revenue during the period in which customers will be transitioned to Covad. Assets include accounts receivable, cash, equipment and other assets and approximately 9,250 lines, which include digital subscriber line and T1 broadband connections, along with virtual private network (VPN) customers. The majority of these lines are currently on Covad's network. There will be a 90-day transition period for all assets to come under Covad's control. "Our number one priority is that these customers now have the assurance of high quality service continuity from a company that is here for the long run," said Chuck Haas, executive vice president of Marketing and Strategy. "It is also good for Covad as we are able not only to preserve these customers and get InternetConnect off our distressed ISP list, but these lines will now be higher revenue and profit for us as direct customers. It is a win-win situation all around." Covad Communications Inc.
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