Network Plus Files Chapter 11

Network Plus, a broadband communications provider with 75,000 East Coast customers, has voluntarily filed for Chapter 11 bankruptcy protection.

by Colin C. Haley of boston.internet.com [February 6, 2002]

"This was a very difficult decision," said Robert T. Hale, Jr., Network Plus president and CEO. "However, at this time, we believe that our actions are in the best interests of our creditors, employees and customers."

The Randolph, Mass., company is trying to obtain debtor-in-possession (DIP) financing from its secured bank lenders, including Fleet National Bank, Goldman Sachs Credit Partners, Netplus Funding (an affiliate of DLJ) and IBM Credit Corp.

DIP backing would enable the company to operate while it tries to find a buyer or auctions its assets. The company is also asking stakeholders for permission to use cash collateral.

The petition was filed in U.S. Bankruptcy Court in Delaware late Monday. Nasdaq officials halted trading ot NPLS stock this morning with shares at 0.22. The issue will not resume trading again until Network Plus has fully satisfied Nasdaq's "request for additional information." It did not specify what information was sought.

Network Plus offers telecommunications and broadband data services, primarily to small and medium-sized business customers located in the Northeastern and Southeastern regions of the United States. The Company's bundled product offerings include local and long distance service and high-speed data and Internet services.

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