Bankruptcy
NorthPoint filed for Chapter 11 bankruptcy protection on March 23, 2001 when it lost the ability to continue to pay its creditors. It then pushed to find short term sources of money to keep the company afloat.
By March 29, 2001, NorthPoint's financial foundation had collapsed, with no source of debt relief. The next morning, Liz Fetter, Northpoint President and CEO sent a letter to ISPs including the following statement:
"At this point it is clear that NorthPoint no longer has funds available to finance the continued operations of our network. As a result, I am hereby giving you notice that the cessation of services to our partners and subscribers and the complete shut down of our network will commence today."
This in fact happened. Over the course of the next several days, tens of thousands of end customers' DSL service terminated, with no 'life raft' or any grace period allowed for customers to move to a different ISP.
AT&T Corporation bought the physical assets of NorthPoint communications for $135 million shortly thereafter, effectively ending the company's existence.
Read more about this topic: NorthPoint Communications
Famous quotes containing the word bankruptcy:
“You must get your living by loving. But as it is said of the merchants that ninety-seven in a hundred fail, so the life of men generally, tried by this standard, is a failure, and bankruptcy may be surely prophesied.”
—Henry David Thoreau (1817–1862)
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—Hannah Arendt (1906–1975)
“Disappointment is a sort of bankruptcy—the bankruptcy of a soul that expends too much in hope and expectation.”
—Eric Hoffer (1902–1983)