Rhythms makes Chapter 11 filing; bondholders sue Mpower Holding

Article Abstract:

Company bondholders have pressured Rhythms NetConnections Inc. to file for Chapter 11 bankruptcy protection. Mpower Holding Corp. has been sued by its bondholders because it is on the brink of insolvency. More bondholders are trying to protect investments by using legal means to get troubled companies to liquidate assets or stop spending. Many bondholders are insinuating themselves into a company's daily operations and not waiting until a company defaults to force restructurings before financial disaster strikes.

Organizational history, Statistical Data Included, Company legal issue, Influence, Bondholders, Mpower Holding Corp.

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Rhythms tells customers it will close

Article Abstract:

Rhythms NetConnections has filed for bankruptcy and alerted its Internet subscribers that service would cease in a month. A buyer could bid on the company, which had reported a first quarter loff of $190.3 million. Even with a month's warning, Rhythms' 83,000 customers will have to scramble to change DSL providers. Rhythms is the second provider, after NorthPoint Communications Group to terminate services and customers are flocking back to the tried-and-true Bells, which now entertain 92% of the DSL market.

Wired Telecommunications Carriers, Telephone communications, exc. radio, Liabilities NEC, Data Transmission Services, Telecommunications services industry, Telecommunications industry, Telecommunications transmission technologies

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At Sunbeam, price is winner, not Morgan Stanley

Article Abstract:

The fall of Sunbeam Co. stock price after management shakeup creates problems for the loan underwriting plans of Morgan Stanley Dean Witter & Co., which was hired to raise money for Sunbeam. Morgan Stanley postpones the syndication of $1.7 billion in loans. Mutual-fund manager, Michael Price, of Franklin Mutual Series Fund Inc., has benefitted from his original $60 million investement in Sunbeam's bankrupt predecessor, and now holds 17.4% of Sunbeam's stock valued at more than $243 million. Mr. Price and Michael Steinhardt took control of bankrupt Allegheny International, owner of Sunbeam, in 1990.

Comment:

Morgan Stanley has loan underwriting problems with Sunbeam Corp. after management shakeup

Securities Dealers, Investment Banking and Securities Dealing, Company Planning/Goals, Electric Housewares and Household Fan Manufacturing, Electric Housewares & Fans, American Household Inc., Morgan Stanley Group Inc., Small appliances, Article

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