July 16, 2004

Telecom will voluntarily enter Chapter 11

Friday, July 09, 2004
BY HENRY C. JACKSON
Star-Ledger Staff
NorVergence will voluntarily seek Chapter 11 bankruptcy protection, a lawyer for the troubled Newark telecommunications company said during a hearing yesterday.

Speaking before a judge in U.S. Bankruptcy Court in Newark, Bruce Buechler said NorVergence "is going to be a Chapter 11 case in a matter of days." Because of mounting pressure from creditors, the company also has fired "90-plus percent" of its staff and needs time to reorganize, he said.

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NorVergence acknowledged at least $30 million of debt in court yesterday.
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