Wavve Files Chapter 11
Sacramento provider cites economic conditions

August 15, 2001 -- Sacramento colocation provider Wavve Telecommunications Inc., said tonight that it had filed for Chapter 11 bankruptcy.
The company, which had been struggling to raise cash, has been plagued in recent months by rapid turnover in management. The company said it will continue to operate its 92,000 square foot data center in Sacramento, in which Qwest is the primary tenant.
"Wavve Telecommunications has been adversely affected by the severe economic problems which are currently plaguing the telecommunications, dot-com and technology industry sectors,'' said Lou Kirchner, president and COO.
"By seeking protection ... Wavve will be able to restructure its debt and long term vendor contracts to reflect today's market realities. We will emerge from bankruptcy and stronger and more viable entity.''
It was not immediately clear what impact the filing would have on the ownership of the Sacramento center, which is controlled by a limited partnership between Wavve and Capital Lease Funding, which lent the struggling provider $42 million in January in a complex financing agreement that funded completion of the facility.
Just after opening the Sacramento center, Wavve said it may cease operations if it cannot raise additional funding, and cut half its staff.
The company was also plagued by a "revolving door" management. In July, president and chief operating officer David Furnas left the company, barely six weeks after assuming the two leadership positions. Vice presidents for managed services, legal affairs and sales and business development also departed in June and July.
Wavve Telecommunications, Inc. is a provider of colocation, network connectivity, Internet and managed services.