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February 18, 2002 — (WEB HOST INDUSTRY REVIEW) — Verado Holdings, Inc.
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announced on Friday that it will file for Chapter 11 bankruptcy protection, after reaching an
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agreement on a liquidation with a committee representing holders of more
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than 66-2/3% of Verado’s 13% senior discount notes due 2008.
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Under the plan, bondholders and other unsecured creditors will receive 90%
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of the net proceeds derived from a liquidation of the company’s assets under
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Chapter 11. The remaining 10% of such proceeds will be distributed to
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Verado’s equity holders. Alvarez and Marsal, Inc., the financial advisors,
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estimates that the recovery of the bondholders and other unsecured creditors
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will be between $.09 and $.13 on the dollar.
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Verado also announced the sale of its Irvine, California data center. The
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company will attempt to sell its Denver IDC as a going concern through a
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sale approved by the bankruptcy court.
