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BurstNET Sued for Not Making Equipment Lease Payments: Court Documents

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Susquehanna Commercial Finance, a company that financed BurstNET’s equipment purchases, has filed a lawsuit in a Pennsylvania court against BurstNET for failing to make payments totaling $205,858, according to a court document (PDF) filed in early February.

According to the document, BurstNET had started falling behind on payments starting in September 2013 on equipment for its Dunmore data center. It also notes that Susquehanna Commercial Finance is requesting $88,465.82 plus expenses from former BurstNET CEO Shawn Arcus.

In an email message to the WHIR, BurstNET president and CEO JW Ray notes this court document was “misfiled” and not meant for BurstNET US but rather BurstNET INT., a separate London company sold in 2013.

Earlier this month, BurstNET informed customers that their equipment would be moving from Dunmore, Pa., to a North Carolina data center where energy is cheaper and customers could benefit from more reliability, connectivity, and redundancy.

Some have speculated in industry forums that BurstNET is moving its business to avoid creditors, a notion that Ray said is “complete speculation” and would not comment on. However, he noted that BurstNET will address concerns in a web conference and press release next week.

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6 Comments

  1. I have recently discovered the Saga of Burstnet. If anyone has had co-location with burst net and has had their equipment moved to Charlotte NC, Contact me. We can offer a more stable environment for your equipment. We can offer all the highlighted advantages of having your equipment stay in Charlotte, but not leave you wondering about what is going to happen next. We are Caronet and your equipment is very close by.

    Reply
  2. Sergio Mcfly

    The worst nightmare in my entire life; I have several websites inside 3 VPS and 3 Private Servers paid in full for a year and one of my "ring" was in PA. After their disaster migration I lost my main server completely; now almost 2 weeks without a single response on my tickets. I swear for GOD: "- I will never do that again". Lesson learned.

    Reply
    • Sergio Mcfly

      Today Mar, 29th 2014. Suddenly my server got back, have no a clue how that came solved but the intricate scenario is that nobody, absolutely nobody did respond my tickets. I spoke two times by phone with couple people asking my data and was told that someone else would come later soon to contact me, which never happened. I will not renew my contract with them, even if they compensate me for. Once my dad told me: "Son, sometimes the cheapest comes out expensive". "- Yeah dad, you're absolutely right!"

      Reply
  3. The docs detail Burstnet Inc not Burstnet Int, so the new CEO of BurstNet Inc saying they were misfiled seems strange. It seems that a lot of things are going poorly at BurstNet. I hope that the staff survive and customers it all ok. It also looks like S.A. personally guaranteed (page 33 in the pdf) some of those leases, which wasn't a good move. This is what happens when providers race each other to the bottom on pricing, ending up with non sustainable lease payments, and rapidly aging hardware (thanks Intel for releasing 3 versions of the E3 in such a short period time, /sarcasm).

    Reply
    • sam

      it seems things aren't right @incero neither, after the price increases on existing clients.

      Reply
      • Appreciate your feedback, however I disagree (I'm biased, see my name). I have to say Incero is doing great, and has zero leases. Moving out of the "race to the bottom" industry and focusing on enterprises that demand 100% uptime was a great move for us, and we've followed through with over 2 years of 100% uptime. Happy to discuss with you if you're an existing client, just send a ticket asking for a call back.

        Reply