Com21 Sells Off, Shuts Down
By Karen Brown -- Multichannel News, 9/5/2003 9:03:00 AM
Bankrupt Com21 Inc.’s plans to reform as a video-technology company apparently blew up on the pad, and it now looks like the company will close its doors for good.
The Milpitas, Calif.-based cable-modem-gear maker gained approval from the U.S. Bankruptcy Court’s Northern California district to sell off its remaining operating assets and personal property in a liquidation sale.
The cable-gear provider will sell off its remaining video-product lines, its Data Over Cable Service Interface Specification gear and its asymmetric-transfer-mode-modem inventory.
When it filed for Chapter 11 bankruptcy in July, Com21 had a plan to sell off its DOCSIS assets and reform itself as a digital-video-headend-technology provider.
It succeeded in selling its cable-modem-termination-system technology to Arris Group Inc. for $2.8 million, as well as the modem assets to CastleNet Technology Inc. and the ATM line to High Speed Data Solutions Inc. for undisclosed amounts.
But the creditors’ committee opposed the use of those assets to fund continued operations. In the meantime, Com21 received purchase offers for its video-product line, DOCSIS-modem-test equipment and ATM inventory.
In all, proceeds from Com21 assets will not be enough to pay off the estimated $25 million debt standing against the company. Given that deficit, the company does not plan to distribute any money to common-stock holders.
On Aug. 31, Com21 let go nearly all of its employees, and as of Friday, it plans to close up its facilities.
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