UBNETWORKS FILES CHAPTER 11 BANKRUPTCY PETITION
IRVINE, Calif.--(BUSINESS WIRE)--October 31, 2000--Universal Broadband Networks,
Inc. (NASDAQ:NM:UBNT), and four of its wholly-owned subsidiaries, announced
today that they have filed voluntary petitions under Chapter 11 of the United
States Bankruptcy Code. The filings took place in the United States Bankruptcy
Court for the Central District of California, Santa Ana Division, Case Nos. SA
00-18281 JB , SA 00-18282 JB, SA 00-18283 JB, SA 00-18284 JB, SA 00-18286 JB.
The Companies are represented in the reorganization proceedings by the law firm
of Albert, Weiland & Golden, LLP of Costa Mesa, California, (714) 966-1000.
Michael A. Sternberg, CEO and President of UBNetworks stated: "Unfortunately,
Chapter 11 is the only alternative at the present time. Depressed market
conditions in the telecommunications equipment and services industries have
prevented us from completing essential vendor financing arrangements. We believe
that such vendor financing would have enabled the Companies to restructure
existing debt and raise additional capital, which would have allowed our
business plan to be executed. The burden of current indebtedness has compelled
the Companies to seek protection under the Bankruptcy Code. The Chapter 11
petitions will insulate the Companies from the collection efforts of creditors,
allowing management time to pursue the reorganization of the Companies while
maximizing value for creditors".
This news release may contain forward-looking statements made pursuant to the
"safe harbor" provisions of the Private Securities Litigation Reform Act of
1995. Investors are cautioned that such forward-looking statements involve risks
and uncertainties, including, without limitation, continued acceptance of the
company's products, subscriber growth, product demand, competition, and other
risks and uncertainties detailed from time to time in the company's periodic
reports, including quarterly reports on Form 10-Q and annual reports on 10-K.
This and additional information can be found on the company's Web site at
www.ubnetworks.com or can be obtained from the company upon request.
