INCOMNET ANNOUNCES FILING OF CHAPTER 11.Byline: Jason Takenouchi Staff Writer After years of fighting creditors, lawsuits and a declining bottom line, long-distance retailer Incomnet Inc. announced Friday it has filed for Chapter 11 bankruptcy reorganization. The company - formerly of Woodland Hills but now based in Irvine - blamed intense competition and ongoing litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. for the filing. Chief Financial Officer George Blanco Blanco (meaning the color white in Spanish) is an adjective often used in Spanish surnames. Below is a list of famous people and places associated with the word. said the company explored other options before filing Thursday, including an asset sale, merger or restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). of debt. But he said the company's problems, including lawsuits by former executives, precluded that. ``There's been so much hanging on this company, it's made it harder to raise new equity capital or partner up with other companies,'' Blanco said. The company will be in a stronger position in four or six months, when the reorganization is over, he said. Incomnet and its subsidiary, Incomnet Communications Corp., specialize spe·cial·ize v. 1. To limit one's profession to a particular specialty or subject area for study, research, or treatment. 2. To adapt to a particular function or environment. in the sale of long distance to residential and small-business customers. Company spokeswoman Jennifer Mercer mer·cer n. Chiefly British A dealer in textiles, especially silks. [Middle English, from Old French mercier, trader, from merz, merchandise, from Latin merx said there would be no disruptions for Incomnet's roughly 92,000 customers. ``It's completely business as usual,'' she said. Incomnet is no stranger to financial troubles. While the company was based in Woodland Hills, it was hounded by creditors, including WorldCom Network Services and First Bank & Trust of Newport Beach Newport Beach, residential and resort city (1990 pop. 66,643), Orange co., S Calif., on Newport Bay and the Pacific Ocean; inc. 1906. It is a popular seaside resort and yachting center. Manufactures include electrical and medical equipment, computers, boats, and adhesives. . It staved off bankruptcy in 1998 by borrowing $20 million from an unnamed venture capital firm. The loan had a 12 percent annual interest rate and was secured by ``substantially all'' of Incomnet's assets. The Securities and Exchange Commission filed a stock trading suit against the Incomnet last year. And in 1997 the company paid $8.65 million to settle a securities fraud suit brought by disgruntled dis·grun·tle tr.v. dis·grun·tled, dis·grun·tling, dis·grun·tles To make discontented. [dis- + gruntle, to grumble (from Middle English gruntelen; see shareholders. Incomnet stock stood at 12.5 cents Friday on no trading. On Thursday, about 1.3 million shares were traded as the stock fell from 18.75 cents to $12.50 cents. |
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