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Re: FWD: Web backbone provider Priori mulls bankruptcy

  • From: Karl Denninger
  • Date: Thu Aug 13 01:19:03 1998

I had heard this through several sources and on a couple of lists today as 
well.

Sorry to be feasting on dead bodies, but keeping people online is more
important than netiquette right now.  

Anyone in Chicago who has found themselves suddenly looking at disconnection 
is welcome to call us; we have capacity (ie: hardware) available right now 
and may be able to get circuits rehomed quickly as well (if you're using TCG 
or MFS for the facilities) as we have fiber from both in our engineering 
room.

--
-- 
Karl Denninger (karl@MCS.Net)| MCSNet - Serving Chicagoland and Wisconsin
http://www.mcs.net/          | T1's from $600 monthly / All Lines K56Flex/DOV
			     | NEW! Corporate ISDN Prices dropped by up to 50%!
Voice: [+1 312 803-MCS1 x219]| EXCLUSIVE NEW FEATURE ON ALL PERSONAL ACCOUNTS
Fax:   [+1 312 803-4929]     | *SPAMBLOCK* Technology now included at no cost

On Thu, Aug 13, 1998 at 12:01:34AM -0400, Eric Germann wrote:
> >From Ziff-Davis newswire.  Another one bites the dust?
> 
> Comments?
> 
> >
> >   ---------------------------------------------------------------------
> >
> >   This article is from ZDNN (http://www.zdnet.com/zdnn/).
> >   Visit this page on the Web at:
> >
> http://www.zdnet.com/zdnn/stories/zdnn_smgraph_display/0,3441,2127660,00.html
> >
> >   ---------------------------------------------------------------------
> >
> >   By Ben Elgin,
> >   Sm@rt Reseller
> >   August 12, 1998 5:47 PM PT
> >   [IMAGE]
> >
> >   Less than one year after Priori Networks Inc. opened its doors for
> >   business, the national Internet backbone provider is on the brink of
> >   bankruptcy, Sm@rt Reseller has learned.
> >
> >   All the company's employees have been laid off and the network
> >   operation center is no longer functional, according to a source at
> >   Priori. Temporary transit arrangements have been made for Priori
> >   customers in the Portland, Ore., Chicago, Washington DC, and Palo
> >   Alto, Calif. areas, but other customers may be left to fend for
> >   themselves, the source added.
> >
> >   Priori president and CEO Robert Shearing says severe financial
> >   shortfalls will force Priori to file for Chapter Seven bankruptcy
> >   within several days unless an acquisition offer is made. Under the
> >   rules of Chapter Seven, the company will be forced to liquidate its
> >   assets to pay off creditors.
> >
> >   "It's not looking good -- we will have a final decision in the next
> >   couple of days," concedes Shearing.
> >
> >   The company, which launched last October, specialized in selling
> >   backbone access to Internet service providers, usually at a lower cost
> >   than its telecommunications competitors.
> >
> >   High hopes dashed
> >   With points of presence in Atlanta; Boston; Chicago; Dallas; Denver;
> >   Los Angeles; Palo Alto, Calif.; Portland, Ore.; Seattle and
> >   Washington, D.C., Priori executives once had high hopes for success in
> >   the ISP backbone vertical market.
> >
> >   But, with a new breed of well-funded backbone providers entering the
> >   market, many industry observers believe Priori was a dollar short and
> >   a year too late.
> >
> >   "They came in when the window of opportunity was closing and they made
> >   several key mistakes. Perhaps the biggest error was focusing too
> >   heavily on engineering while ignoring the sales side," says ISP
> >   consultant Michael Dillon, who worked for Priori Networks for six
> >   months.
> >
> >   ---------------------------------------------------------------------
> >
> >   Copyright (c) 1998 ZDNet. All rights reserved. Reproduction in whole
> >   or in part in any form or medium without express written permission of
> >   ZDNet is prohibited. ZDNet and the ZDNet logo are trademarks of
> >   Ziff-Davis Inc.
> > 
> 
> ==========================================================================
>   Eric Germann                                        CCTec
>   ekgermann@cctec.com                                 Van Wert, OH 45891
>   http://www.cctec.com                                Ph: 419 968 2640
>                                                       Fax: 419 968 2641
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