360networks gains time in British Columbia

Struggling 360networks announced Friday that the Supreme Court of British Columbia has extended the order providing the company protection under the Companies’ Creditors Arrangement Act (CCAA) December 31, 2001.

In a statement Greg Maffei, president and CEO of 360networks, said he was pleased that the company’s secured lenders and the Canadian court have extended the company’s order. Maffei said the extension would provide the company time to restructure its business plan in North America and sell key assets outside the United States and Canada.

The restructuring plan entails constructing and lighting an optical mesh network in North America and continuing to provide broadband services to 360network customers, Maffei added.

The court order includes a cash budget through 2001. At this time, 360networks said it does not anticipate needing debtor-in-possession financing.

Last month, 360networks Inc., along with several of its subsidiaries and affiliates, filed for bankruptcy protection in Canada and the United States [see story – 360networks files for bankruptcy].

The company said it would use its US$155 million of unrestricted cash, cash equivalents, short-term investments and marketable securities on hand to fund ongoing operations in the two countries and to complete key segments in its network.

As part of its restructuring, last month, the company announced it would slash its workforce by nearly half, shedding 800 jobs worldwide [See story – 360networks announces job cuts].

The company had promoted an ambitious plan to link some 100 major cities in North America, Europe, South America and Asia with a network spanning approximately 140,000 kilometres, but ran up against declining telecommunication sales and unfriendly capital markets.

Based in Burnaby B.C. 360networks can be reached at http://www.360networks.com.

– With files from Rick Perera IDG News Service.

Would you recommend this article?


Thanks for taking the time to let us know what you think of this article!
We'd love to hear your opinion about this or any other story you read in our publication.

Jim Love, Chief Content Officer, IT World Canada

Featured Download

IT World Canada Staff
IT World Canada Staffhttp://www.itworldcanada.com/
The online resource for Canadian Information Technology professionals.

Featured Articles

Cybersecurity in 2024: Priorities and challenges for Canadian organizations 

By Derek Manky As predictions for 2024 point to the continued expansion...

Survey shows generative AI is a top priority for Canadian corporate leaders.

Leaders are devoting significant budget to generative AI for 2024 Canadian corporate...

Related Tech News

Tech Jobs

Our experienced team of journalists and bloggers bring you engaging in-depth interviews, videos and content targeted to IT professionals and line-of-business executives.

Tech Companies Hiring Right Now