NorthPoint Files for Chapter 11

NorthPoint Communications Inc. said it filed for Chapter 11 bankruptcy protection and will sell most of its business in the wake of Verizon Communications’ decision in November to pull out of a deal to buy 55% of NorthPoint. The San Francisco-based company said, however, that it has secured $38 million in debtor financing to continue day-to-day operations until it can find a buyer. NorthPoint has sued Verizon and is seeking up to $1 billion in damages in a jury trial, alleging that Verizon illegally breached an agreement to merge the two companies’ digital subscriber line businesses.