SAN JOSE, Calif. (AP) – NorthPoint Communications Inc., a high-speed Internet access provider, has filed for Chapter 11 bankruptcy protection. The company, which filed on Tuesday in U.S. Bankruptcy Court in San Francisco, said it would cut its full-time work force by 19 percent and would sell its assets to a strategic partner.
During a conference call, NorthPoint president and chief executive Liz Fetter cited the company’s failed merger with Verizon Communications as the reason for NorthPoint’s subsequent funding shortfall. Northpoint is suing Verizon for $1 billion.
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Northpoint said service to its customers would not be affected. According to Fetter, the company has secured $38 million in financing from existing lenders to continue operations.
NorthPoint’s stock sold for $45 a share in May 1999. The last sale of NorthPoint stock was for $1.41, on Wednesday.
