Pathnet Files for Chapter 11 Protection
Company is in sale talks with national telco provider

April 4, 2001 -- Pathnet Telecommunications, Inc. filed for Chapter 11 bankruptcy Monday, saying it will continue to provide service to customers while it seeks a purchaser. Pathnet said it is "actively engaged in such discussions with a national telecommunications company."
The voluntary filings were made with the U.S. Bankruptcy Court for the District of Delaware.
. "The protection provided by Chapter 11 will conserve our cash and ensure that all creditors are treated fairly and equally," said Richard Jalkut, Pathnet's president and chief executive officer. "Our ability to meet our obligations to customers and vendors is thereby enhanced.
"Our management team will continue to lead the business and we will serve all of our customers without interruption," Jalkut added. "Our immediate goal is to continue providing outstanding service to our customers while we further develop a current strategic opportunity."
Pathnet has retained the financial restructuring firm of Policano & Manzo as its financial advisers and the firm of Houlihan, Lokey, Howard and Zukin as its investment bankers. The company said it expects to make a scheduled April 16 interest payment on its 12 percent Senior Notes, and is in discussions with the holders of the notes.
Pathnet is a wholesale provider that delivers broadband access and transport solutions to classic telecommunications carriers, as well as ISPs and CLECs. It currently has 7,700 route miles of completed network and 3,400 additional route miles of network under construction.