Future dimming for ICG
Even the CEO doesn't appear to have confidence in struggling Englewood, Colo. based ICG.
After less than a month at his new post, ICG Chairman and Chief Executive Officer Carl Vogel resigned Monday, causing the company's ailing stock to fall below $1 Tuesday. Executive board members Gary Howard and Thomas Hicks also resigned Monday. The resignations followed ICG's second earnings warning in six weeks because of continuing equipment and customer service problems.
William S. Beans Jr. will continue as president and chief operating officer of the company, ICG said in a statement.
Analysts think the likelihood of ICG filing bankruptcy is very possible, believing ICG will run out of money in 1Q 2001 if it doesn't obtain any additional financing. Adding insult to injury, Credit Suisse First Boston said they would no longer cover ICG effective Sept. 19 because of ongoing execution problems with the core ISP business, and concerns regarding the company's ability to fund itself through year-end 2000.
ICG, a telephone and Internet services provider to businesses, named Vogel its chief officer less than a month ago. ICG employs 3,000 people nationally.