Redback Networks Files for Bankruptcy
Redback Networks Inc., which makes equipment used to deliver high-speed Internet service, filed for bankruptcy protection, seeking to execute a recovery plan that almost all of the company’s bondholders had agreed to support.
Redback listed $591.7 million in assets and $652.9 million in debt in Chapter 11 papers filed in U.S. Bankruptcy Court in Wilmington, Del.
Under the company’s prepackaged reorganization plan, holders of the company’s $467.5 million in convertible subordinated bonds agreed to swap their investment for company stock, court papers show.
Shares of San Jose-based Redback fell 8 cents to 36 cents on Nasdaq.