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.