February 25, 2003 -- (WEB HOST INDUSTRY REVIEW) -- Enterprise solution provider divine Inc. (divine.com) announced on Tuesday that it its board of directors has authorized divine and several of its subsidiaries to file a voluntary petition for reorganization under Chapter 11 of the US Bankruptcy Code today.
The company says the actions are being taken to protect the value and viability of divine's operations while it works to restructure its liabilities and achieve a resolution to issues facing its RoweCom Inc. subsidiary. To help increase the efficiency of the reorganization, divine says it will file its petition in the United States Bankruptcy Court in Boston Massachusetts, the venue where RoweCom's Chapter 11 case is proceeding.
Financial advisory firm Casas, Benjamin & White LLC (CBW) will assist divine's management team in handling day-to-day operations. The company and CBW intend to continue exploring strategic options with Broadview International LLC, including the possible sale of its assets in order to maximize return to creditors.
divine says it is reporting approximately $25 million in unrestricted cash on hand, which will provide sufficient capital for the operation of the business while options are considered for maximizing value to creditors. The company says it has received interest in each of its operating units, with several organizations expressing interest in purchasing some or all of divine's assets and operations.
divine purchased Data Return, a Web hosting firm, in November 2001. In January 2002, the firm purchased Northern Light, a prominent search engine.
