Viatel files for Chapter 11 bankruptcy in the U.S.
May 22, 2001 Viatel has filed for Chapter 11 bankruptcy in the United States, so that it can better focus on its European holdings.
May 22, 2001 Viatel (www.viatel.com), an international builder, owner, and operator of fiber-optic networks and provider of telecommunications services, has filed for Chapter 11 bankruptcy in the United States, so that it can better focus on its European holdings. The company cited cash drain from the residential voice business acquired from Destia Communications as being the reason for the filing. By shutting down this business, Viatel proposes to "maximize the value of its pan-European broadband network and growing enterprise business, either through a strategic alliance or via a stand-alone restructuring."
The company stressed in its announcement that ongoing business by its independent European and UK subsidiaries would not be affected by the filing. Part of the plan, filed in the U.S. Bankruptcy Court in Delaware, involved laying off approximately 350 workers.