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DV2 = Chapter 11 ?

Coight

NLC
NLC
Well I think it is true, and if it is why have they left it for so long? I have posted my thoughts over there. Payments for our servers will not be made until some information regarding this issue is received.
 

Haze

iminteractive.net
NLC
I just had 2 people in the USA call and confirm this for me with the (Edit: im talking about the "Northern District of Georgia's toll-free information system" number that was posted on WHT ). I just hope we get some official word very very soon! Im already looking at getting colo's up in interNAP or NAC.
 
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Gayowulf

G-d
NLC
It must be the shits when your provider goes bankrupt on you.

I can get you all some colo at exodus if you want. just shout :)

(no relation to my sales job at edge-host, just so you know)
 

Coight

NLC
NLC
I called myself :(, bit shifty buy Imran to state they weren't bankrupt.

- To confirm they have filed
"The Telco has not tranxact or eservers, It is the DSL business that filed. "
 

Haze

iminteractive.net
NLC
Looks like its not all as bad as it seems. Read the above mentioned thread for details.
 

richo

New Member
Chapter 11 isn't neccessarily the end of the company. I know two very large engineering companies (amusement ride design and construction), that in the last year have both declared Chapter 11 or their nation's equivalent (one was in The Netherlands) of bankrupcy protection.

That's primarily what it is, a company files for Chapter 11 for protection of their assets and ongoing lawsuits while they restructure and try and get their finances fixed.

Often, not much happens, the company disappears. However, in my previous two examples, both companies are slowly coming back (one was the largest producer of rollercoasters in the world, the other invented the modern steel rollercoaster).

I have no idea with this company, but your best bet is to wait it out. If you're getting the service, you should continue paying, or cancel your servers and discontinue payments.

The last thing I'd do, if I were the operators of this company, is withhold information from the clients. I don't know who's running this, but I'd expect that before you find your server offline, you'd at least be told something.
 

Fisherman

New Member
Chapter 11...is a strategic move, the most of the cases. So no big worries. Almost always there are no effects on the service provided...maybe just some changes to the pricing.
 

Daniel

Megalomaniac
NLC
Originally posted by Haze
I hear they are. Read the entire thread mentioned above.
Ok, I think I'll take your word for it, I'm not going to read 16 pages of something that you managed to sum up in 1 sentence. :D
 

Haze

iminteractive.net
NLC
Here is a direct quote from Jeff H, from the post:

yes - we filed ch 11 - back on may 5. we did this for one reason only - we had one leasing company ~(Cisco systems - sunrise leasing) that we had shut down a business that their equipment was supporting (converged services - voip - business) that was eating up a large part of our free cash flow. They were very aggressive and very nasty and under threat of them coming to get equipment every time we were late or missed a payment (many of you know how running a business is - because I have cut many of you slack on payments ) I decided we needed to replace their equipment with paid off equipment and just send theirs back - of course after we tried to renegotiate the terms of thelease to a 5 year instead of 3 year for an acceptable cash flow cost - well they did not want to negotiate anything - so over a period of 6 months - we paid them and moved to an infrastructure that is paid off. Well - in a lawsuit over this lease - we agreed to make payments to them - then when one of our largest customer decided to shaft us - we delayed payment on it for 30 days - well on day 31 they decided to get aggressive and stat costing us legal fees again -this is rediculous - and under advice - I figured it was better to forcefully reorg them and everyone else since we have a healthy business. Plus with the current climate - we would be behind the ball if we did not make sure we did this while everyone else was.

We are completely cash flow positive - and have been for a while. We are going to emerge from this when Igive my reorg plan on 9/5 - I have until then - so why rush.... at that point we will emerge and will pay our moneys to a trust and will have less debt and wont have to deal with these guys (who are really rediculous btw). We are only delivering a certain amount of servers because I only purchase the amount ofservers that part of of our previous months cash flow supports - we are not going into debt at all to grow our business.

So - as you can see - things are fine - we are growing fine and will be in a great position very shortly. Finally - another reason - is that by filing ch11 - we gain the help of the federal court in collecting on some very large judgments against a couple of our actions we are pursuing.

I made the decision not to run out and tell everyone this information because we were not going away and there was no reason togive unscrupulous operators like "I hate DV2" and premerature things to talk about - I am sure he is plenty premerature in other areas to spend his time on this one.


We have been buying more servers every month and we pay cash for them - everything is paid off from here - you can take that one to the bank - a federal court wont let you grow your business except off positive cash flow and profits. Our server business is very profitable and very healthy. We have done all our reorgs and changes in business that we need to and are in one of those boring growth modes - thank goodness. We have other business that is opart of our model and revenue each month - servers are only about 1/3 of our revenue -and we dont ahve any customes that represent more than 10% of our revenue. So - things are good - in fact they are better than they have ever been.

We appreciate everyones business and will continue to grow and support our customers.

On connectivity - we took national net down intermittantly - we were having problems with some routing between them on certain networks - netrail is still a seperate network and we have another connection to bale and wireless coming shortly - national net may be back up today and we intend on keeping them.

We are smaller and not like some of these big ships that when they file and are losing money - there isjust no way they will be ableto turn it around in time - we are profitable - and small and mangebale.

IF you have any moe questions - let me know -thanks as always.
Taken from page 11: http://webhostingtalk.com/showthread.php?s=&threadid=64222&perpage=10&pagenumber=11
 

9cy

New Member
CH11 doesn't mean the company will die. It just means they are bankrupt... Some company's can use this time wisely to turn the situation around and make the company profitable but many just die.... DV2 may well survive this. CH11 can last over a year far as I know I mean companies continually run in this sort of situation... Its not the most stable of enviroments to move server's into but they should still be realible enough at least for several months to come.
 
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