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November 8th, 2007, 03:17 PM #1inPhonic files chapter 11?
I got confused when I read this, not sure if I understand it correctly or not, since I know a lot of you are in the inphonic (wirefly) affiliate program I figured I'd post and see if you guys are as confused as me.
November 8th, 2007, 06:28 PM #2
it says i have to log in to read your release... do you have another source that's open?
this looks like the story you're likely referring to...
InPhonic defaults on loans
InPhonic Inc. has defaulted on its credit agreement.
In a filing with the Securities and Exchange Commission Friday, the D.C.-based seller of wireless service plans said it received of a notice of default from its secured lenders that it failed to pay interest on loans on Oct. 1. It also failed to outsource its inventory management by Oct. 5. It's unclear what actions the lenders will take.
The disclosure follows InPhonic's announcement Oct. 11 that it cancelled its $5 million alliance with Brightstar Corp., fired its chief operating officer Brian Curran and hired financial advisory firm Lazard Middle Market to possibly sell the company.
The company also said it expects to report further losses in its third quarter.
In the second quarter, InPhonic (NASDAQ:INPC) reported it lost $41 million in the second quarter ended June 30, compared to a loss of $9 million for the year-ago quarter.
Amid its Thursday annoucements, InPhonic's shares fell 60 percent and closed at 77 cents.
I remember when InPhonic bought out VMC satellite... and I remember thinking how naive they were to do that... looks like it has all finally caught up with them.
Karma's slow, but sweet... like honey.
November 8th, 2007, 06:48 PM #3
Opps forgot that you need access to view the release here it is
InPhonic, Inc. (NASDAQ:INPC), a leading online seller of wireless services and products, today announced that it has entered into an agreement to sell substantially all of its assets to an affiliate of Versa Capital Management, a Philadelphia based private equity firm.
In order to implement the sale, InPhonic filed a voluntary petition for reorganization under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware. InPhonic's Board of Directors has unanimously determined that the Chapter 11 process will provide an efficient environment for completion of the sale. The sale is subject to higher and better offers, and InPhonic anticipates completing the sale before the end of the year, subject to court approval. InPhonic will continue to conduct normal business operations at all of its facilities consistent with its obligations as a Chapter 11 debtor-in-possession.
Versa will also be providing a Debtor-in-Possession ("DIP") financing facility to provide working capital and financial resources necessary to fund the transition in operations to new ownership pending court approval of the sale to Versa.
The Company's recently appointed management team believes that this expedited process is necessary to promptly institute its improved business plan and that the filing and sale are in the best long-term interest of the Company, as well as its customers, partners, vendors and employees. Lazard Middle Market, the Company's financial advisor, is assisting the board through this process.
"We intend to use this filing to take the actions necessary to position InPhonic for future success. We want to assure our customers, our employees and our partners that InPhonic is operating business as usual during this transition," said Andy Zeinfeld, InPhonic's Chief Executive Officer. "I am confident in InPhonic's business model and with the cost-cutting measures and profit-driving initiatives we have implemented across the organization. The new direction I have set is comprehensive and our dedication to customer, partner and employee satisfaction is unwavering. InPhonic plays a critical role as a leader in the wireless marketplace and through this sale to Versa, it will operate on stable financial footing and its leading role will be preserved."
Ken Schwarz, InPhonic's Chief Financial Officer added, "This sale will strengthen the Company and foster a sustained turnaround for InPhonic. This milestone marks a fundamental, comprehensive and systemic change at InPhonic. Our customers, partners and employees want the Company to succeed because of InPhonic's significant value in the wireless marketplace. We expect to proceed quickly with this sale and that the business will have a significantly improved balance sheet, greater operating flexibility and a swift path to profitability."
The Company expects that shares of its common stock will have no value as a result of the Chapter 11 filing.
The filings were made today in the federal courts in Wilmington, Delaware.
More information about InPhonic's reorganization is available at a special website: http://www.inphonic.com/reorg.
About Versa Capital Management
Philadelphia-based Versa Capital Management, Inc., formerly known as Chrysalis Capital Partners, L.P., is a private equity investment firm which focuses on special situation investments including turnarounds, restructurings, reorganizations and recapitalizations in a wide range of industries and circumstances throughout the United States. More information can be found at http://www.versafund.com.
Headquartered in Washington, D.C., InPhonic, Inc. (NASDAQ:INPC) is a leading online seller of wireless services and products. InPhonic sells these services and devices, and provides world-class customer service through websites that it creates and manages for online businesses, national retailers, member-based organizations and associations under their own brands. InPhonic also operates Wirefly (http://www.wirefly.com), a leading one-stop comparison mobile phones and wireless plans shopping site that has been awarded "Best of the Web" by Forbes magazine and "Best in Overall Customer Experience" by Keynote Performance Systems. InPhonic also delivers a full range of MVNO and mobility solutions to enterprise clients through its Mobile Virtual Network Enablement (MVNE) platform. Among many awards in its history, InPhonic holds the distinction as #1 Company of the Year on the INC. 500 for 2004. For more information on the company, its products and services, visit the InPhonic Corporate Web site at http://www.inphonic.com.
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