Nasdaq Trading in MicroAge Stock Halted as Troubled Company Files for Chapter 11 Bankruptcygreenspun.com : LUSENET : Grassroots Information Coordination Center (GICC) : One Thread
Friday April 14 1:24 PM ET
Nasdaq Trading in MicroAge Stock Halted as Troubled Company Files for Chapter 11 Bankruptcy
WASHINGTON (Reuters) - MicroAge, Inc. (NasdaqNM:MICA - news), in the process of shifting its business focus to business-to-business services from information technology products, said it filed for Chapter 11 bankruptcy protection to aid in its reorganization.
The Nasdaq Stock Market said it halted trading in shares of MicroAge until the company satisfies the market's request for more information.
``The actions we have taken, as painful as they are, will allow us to accelerate the transformation of the company to effectively compete in the digital marketplace,'' said Chief Executive Jeffrey McKeever in a statement issued on Thursday.
The Tempe, Ariz.-based company said that it has received a commitment for $225 million in debtor-in-possession financing, still subject to court approval, through a group of financial institutions led by Citibank N.A. MicroAge said it will use the funding to pay for all trade and employee obligations and for the operating costs it will face during its reorganization.
-- Carl Jenkins (Somewherepress@aol.com), April 16, 2000