NetVersant files for Chapter 11 protection
By Martha Entwistle
Updated Mon November 24, 2008
This is a breaking story I'm working on, and was tipped off to by a loyal reader and a press release from Anixter. Here's what I've got.
Anixter International Inc. Comments on Customer Bankruptcy
Anixter International Inc., a leading global distributor of communication products, electrical and electronic wire & cable, fasteners and other small parts today commented on the anticipated financial impact from the bankruptcy filing by NetVersant Solutions, Inc. ("NetVersant").
On November 19, 2008 NetVersant filed for protection under Chapter 11 of the U.S. Bankruptcy Code in U.S. Bankruptcy Court for the District of Delaware. In those filings, NetVersant showed Anixter and its subsidiaries to be unsecured creditors in the amount of $28.6 million. At this time Anixter is evaluating its position with respect to lien or other rights which it may have in connection with sales to NetVersant.
Specific to this bankruptcy filing Anixter anticipates recording an expense of approximately $20 to $22 million in the fourth quarter of 2008 to increase its reserve for doubtful accounts.
Commenting on the NetVersant bankruptcy, Bob Eck, President and Chief Executive Officer of Anixter said, "We are obviously disappointed with the bankruptcy of a customer with whom we have a long term working relationship. In this challenging economic environment we are continuing to work closely with all of our customers and suppliers to maintain constructive business relationships. A current assessment of our key customer relationships shows this situation to be unique in terms of the circumstances and relative size of the exposure."
So, you know what I know. I'm going to go find the bankruptcy filings and put in some calls.
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