Crosswave Communications files for court protection.
Crosswave Communications Inc., a Tokyo-based provider of data communications services for corporate clients, said Wednesday it has filed with the Tokyo District Court for protection from creditors under the Corporate Rehabilitation Law.
Two affiliated companies -- Crosswave Facilities Inc. and Crosswave Services Inc. -- also filed for court protection.
According to private credit research agency Teikoku Databank Ltd., the three companies went down with liabilities totaling 68.4 billion yen, the largest collapse in Japan's communications industry.
Crosswave Communications is listed on the Nasdaq market in the United States.
At a press conference Wednesday, Crosswave Communications President Koichi Suzuki blamed his company's failure on ''fierce price-cutting competition and the economic slump.''
Crosswave Communications was established in 1998, with capital contributed by Internet Initiative Japan Inc., Sony Corp. and Toyota Motor Corp., as the first Japanese company specializing in data communications services. In the year ended in March, the company incurred an unconsolidated net loss of 13.7 billion yen on operating revenues of 20 billion yen.
Crosswave Communications will continue serving 460 corporate clients under the supervision of a court-appointed trustee.
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|Publication:||Japan Computer Industry Scan|
|Article Type:||Brief Article|
|Date:||Aug 26, 2003|
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