Convergent files Chapter 11
Following through on its warning earlier this week, Convergent Communications Inc. filed Chapter 11 bankruptcy yesterday along with its subsidiary, Convergent Communications Services Inc.
In a statement on its home page, Convergent elaborated: "In light of the constrictive capital markets and the company's inability to raise required financing, (Convergent) filed a voluntary petition for protection. … We did this in order to maximize the value of the company as we work through the restructuring process for our business, which will focus on the sale and/of liquidation of assets."
The company says it is seeking alternative providers for its customers and is looking for purchasers of its assets.
The filing, in a Denver federal bankruptcy court, comes two days after the Englewood, Colo.-based company strongly suggested it would file, cut 400 jobs, and was delisted from NASDAQ. Last week, it was notified by Cisco Systems its subsidiary was in default on a vendor financing agreement.