Managed services provider NetWolves says it’s bouncing back. The company announced emergence from Chapter 11 Reorganization, which it filed for on May 21, 2007. On Aug. 30, 2008, the U.S. Bankruptcy Court for the Middle District of Florida signed an order confirming NetWolves Corp.’s Third Amended Joint Disclosure Statement in connection with Third Amended Joint Plan of Reorganization.
The purpose of this voluntary filing was to allow the company to restructure with the assistance of the court. NetWolves explained it filed not because of a flaw in its business plan, but because of some external factors including ongoing litigation and inaccurate publicity that led to the inability to raise additional capital.
Over the past 15 months, the company has used this tool to “right-size” the business, leading NetWolves to achieve net income from operations for the past two quarters.
“We are very excited that we have emerged from Reorganization,” said Ryan Kelly, NetWolves vice president. “We have gained a significant amount of traction working with agents who like to take advantage of our unique portfolio of products and services. We are now properly funded and look to leverage this momentum into some great wins for our partners.”