Covad Planning For Chapter 11

Logic writes: "According to their press release, Covad Communications Group, Inc. is preparing to file for Chapter 11 protection for restructuring. One of the most important points in the release is Covad Communications Group, Inc.'s operating companies, which provide DSL services to customers, are not expected to be included in the court-supervised proceeding and will continue to operate in the ordinary course of business without any court imposed restrictions,' meaning that the operating companies which deal with service providers (such as Speakeasy, who have endorsed Covad's action) will continue to operate unfettered by the court restrictions, and end-user services should be unaffected. Hopefully." As a Speakeasy customer (at home), I sincerely hope that my connection doesn't go away.

Comments

Screwed by a Monopoly

[smartin]

I don't know Covad's full story but I feel kind of bad for them because their problems may not entirely be their fault. I tried for 3 months last year to get a DSL line, Covad was always prepared to do it but were dependent on Verizon. Verizon never showed up for a single appointment and consistently reported that they did and had no access to the property. Turns out that was their standard approach to dealing with other companies customers. Pretty hard to survive in a market where you live under the thumb of the ruling monopoly.

I'd like to be able to borrow 1.4 billion...

[Robber Baron]

...and not have to pay most of it back! I'm beginning to believe that certain unscrupulous people are starting to take advantage of the talking-head spawned hype surrounding the "dot-com meltdown" in order to get out from under their financial responsibilities. It also illustrates a truism: No matter how much money is raised, a poorly led company will find some way to piss it all away quickly.