Via Robert Hettinga of Philodox:
02 March 2001
CyberCash has failed in its bid to raise the financing for its proposed
takeover of Network 1 Financial. The companies have instead entered into
an
asset purchase agreement under which Network 1 Financial will acquire
all
of CyberCash's operating assets and assume all of the company's
operating
liabilities. The transaction will be consummated under a Chapter 11
bankruptcy proceeding in a case commenced today in Delaware.
It marks the end of a sorry saga for CyberCash, which saw its stock
market
value plummet just before Christmas and lost its co-founder and CEO Bill
Melton following a blazing row with creditors.
CyberCash will continue to support its existing customer base of more
than
27,500 Internet merchants and more than 100,000 software users and
maintain
all normal business functions including marketing and sales activities,
partner marketing programs and completing scheduled enhancements to its
Internet payment processing service.
Dan Lynch, CyberCash's chief executive officer, says: "We are making
this
move now to ensure that CyberCash's obligations can be satisfied and to
maximise any residual value for the company's stockholders."
Bill Wade, Network 1's chief executive officer, says his company will
continue to support and provide service to the CyberCash merchant base,
and
continue without interruption the key processor relationships that
contributed to the transaction growth of the CyberCash gateway.
Completion of the transaction is subject to numerous conditions as well
as
approval by the bankruptcy court. The parties hope to consummate the
transaction in early April.
Copyright Finextra 2000
see www.Finextra.com for more information
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