WINfirst Cable Company Faces Bankruptcy
Cable Company Owes $50 Million
POSTED: 4:32 p.m. PDT May 15, 2002
UPDATED: 8:10 a.m. PDT May 16, 2002
SACRAMENTO, Calif. -- Sacramento's troubled cable company, WINfirst, may soon shut down or be sold. Its fate is now in bankruptcy court with creditors expected to push for liquidation at a hearing Thursday.
The federal bankruptcy filing reveals that WINfirst owes over $50 million.
Former partner Bechtel Engineering is laying claim as well as a long list of local businesses, including the Sacramento Municipal Utility District, the city and county of Sacramento, the Sheraton Hotel and Pacific Bell.
There's a chance that creditors will soon demand Chapter 7 liquidation of assets, immediately shutting it down. Sacramento Cable Commission Executive Director Richard Esposto is concerned.
WINfirst arrived two years ago, boldly promising to deliver ultra high-speed Internet, digital cable TV and telephone service to every home in Sacramento County. But the combination of heavy construction, spending and disappearing investment capitol is proving fatal.
In March, WINfirst filed for bankruptcy, fired an estimated 250 workers and halted construction on its fiber network.
The company closed its Denver headquarters, relocating to an office at McClellan Business Park, where CEO Frank Casazza is one of the few remaining executives.
WINfirst now serves an estimated 3,500 customers in Natomas, Arden Park and Sierra Oaks neighborhoods. Published reports say that only 69 employees remain on the job. But WinFirst installers are still busy in neighborhoods, hooking up new customers to bring in desperately needed revenue.
The federal bankruptcy filing reveals that WINfirst owes over $50 million.
Former partner Bechtel Engineering is laying claim as well as a long list of local businesses, including the Sacramento Municipal Utility District, the city and county of Sacramento, the Sheraton Hotel and Pacific Bell.
There's a chance that creditors will soon demand Chapter 7 liquidation of assets, immediately shutting it down. Sacramento Cable Commission Executive Director Richard Esposto is concerned.
WINfirst arrived two years ago, boldly promising to deliver ultra high-speed Internet, digital cable TV and telephone service to every home in Sacramento County. But the combination of heavy construction, spending and disappearing investment capitol is proving fatal.
In March, WINfirst filed for bankruptcy, fired an estimated 250 workers and halted construction on its fiber network.
The company closed its Denver headquarters, relocating to an office at McClellan Business Park, where CEO Frank Casazza is one of the few remaining executives.
WINfirst now serves an estimated 3,500 customers in Natomas, Arden Park and Sierra Oaks neighborhoods. Published reports say that only 69 employees remain on the job. But WinFirst installers are still busy in neighborhoods, hooking up new customers to bring in desperately needed revenue.
Previous Stories:
- March 12, 2002: WINfirst Files Bankruptcy
- February 27, 2002: Sacramento Cable Upstart Hits Financial Speed Bump
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