Verilink Corp., makers of broadband access equipment for ILECs, CLECs, IXCs and other carriers, said today it has filed for Chapter 11 bankruptcy.
The Colorado-based company which distributes through VARs and other channel partners said it needs to reorganize so it can relieve some of its financial pressures, according to its news release.
Verilink has named Lee N. Katz, a managing partner of management services firm Grisanti, Galef & Goldress as its new president and CEO, replacing Leigh S. Belden, who was laid off April 7. Katz has 30 years experience helping companies restructure and emerge from bankruptcy; he has acted as head of a number of under-performing public and private companies, Verilink said.
“We want to assure our customers and suppliers that this filing will not impact our day-to-day operations, and we remain committed to serving the needs of our customers,” said Katz. “While filing Chapter 11 is never an easy decision, we believe it will provide Verilink with the flexibility needed to address Verilink’s financial challenges and valuable ‘breathing room’ to strengthen Verilink’s financial affairs.”
Verilink said it will operate as normal during the bankruptcy process. However, to save money, the company last Friday laid off 20 percent of its workforce. That reduction included Belden and Timothy R. Anderson, who served as CFO. Verilink said it expects to use Belden and Anderson as consultants during the companys reorganization. Belden, though, along with Verilink co-founder Steven C. Taylor, has resigned from Verilinks board of directors.
The publicly held companys shares were down nearly 86 percent at Monday mid-morning, trading for 9 cents.
Verilink Corp. www.verilink.com
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November 13 2019 @ 17:15:01 UTC