Creditors won't seek liquidation of WINfirst
Copyright 2002 Knight Ridder/Tribune Business News
Copyright 2002 The Sacramento Bee
Creditors of beleaguered WINfirst have agreed not to seek the liquidation of the cable and telephone company as progress is being made in finding a buyer.
WINfirst President Frank Casazza said Tuesday that in a hearing in Denver on Monday creditors withdrew their request that the company's Chapter 11 bankruptcy filing be converted to Chapter 7.
Such a conversion would have meant creditors could have shut down the company and liquidated its assets.
He said the creditors appeared satisfied that WINfirst was closer to finding a buyer. Representatives of the creditors could not be reached for comment.
Casazza said three or four groups have made serious inquiries about acquiring WINfirst's assets and continuing to offer video, telephone and high-speed Internet service through its network. He said all the potential buyers also have indicated they want to expand the system beyond Natomas and parts of Carmichael, where it now operates. He declined to identify potential buyers, though Roseville-based SureWest Communications said last week that it was investigating the purchase of WINfirst.
Creditors also agreed not to seek the appointment of a chief restructuring officer, who would in effect run the company to help preserve its value, Casazza said.
Instead, a representative of the creditors committee is stationed at WINfirst headquarters at McClellan Park to monitor the business and report back to creditors, he said.
WINfirst filed for Chapter 11 bankruptcy protection in March after running short of cash during its efforts to build a high-speed video, voice and Internet system in Sacramento.