World's highest-earning ASP files for Chapter 11

Cunning plan to attract investment...

By Sonya Rabbitte, 9 January 2002 22:52

NEWS USI, once hyped as the world's highest-earning ASP, has filed for chapter 11 bankruptcy protection in a bid to gain new investment from former white knight VC company Bain Capital. Bain agreed to invest $106m in USI in October, saving the ASP from certain bankruptcy. However, under agreed terms USI must clear $120m in debt before financing begins. USI said at the time that it hoped to reduce debt without filing for chapter 11, but it failed to reach agreements with all of its creditors. The new investment will be subject to court approval and will depend on USI meeting certain business milestones.

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