Wireless Service Provider InPhonic Files Chapter 11 Petition
InPhonic, Inc., a provider of wireless services and devices, filed a Chapter 11 petition today in the United States Bankruptcy Court for the District of Delaware. InPhonic, along with its co-debtors, has requested that their cases be jointly administered under case number 07-11166. Judge Kevin Gross will preside over these cases.
InPhonic sells its services through various websites. Its stock is traded on the NASDAQ under symbol INPC. InPhonic stock closed at $0.06 today, falling from an opening price of $0.40, and from a 52 week high of $14.49.
InPhonic attributes today’s filing, in part, to a recent default under a prepetition credit agreement, as well as illiquidity and declining revenues caused by unprofitable marketing activities and an inability to maintain adequate inventory of the most popular wireless devices. InPhonic’s top creditor list reads like a who’s who of the nation’s top technology companies. MSN, Yahoo!, Google, America Online and Verizon all rank among the debtor’s top ten creditors.
