Breaking News-Stream Intelligent Networks files for receivership, sources tell Network Letter

Though unconfirmed by the company, several sources have indicated that metropolitan area network (MAN) provider Stream Intelligent Networks Corp. filed for receivership last week. The company, known for its STAR sewer fibre-laying technology, did not return telephone calls or emails at press time to either confirm or deny the information, and Network Letter was unable to reach a live body from the company on the phone. According to one source, the company filed for receivership on Feb. 22 and other Stream business partners have said that they’ve heard the same news. Officials in two Ontario municipalities, including Toronto deputy mayor Case Ootes, told Network Letter at press time that they were notified by email late February 25 of the company’s current situation. It is not known, however, if those email notifications originated from Stream itself. PricewaterhouseCoopers has apparently been named the receiver, Network Letter has learned. The turn in fortunes for Stream is surprising since the company has often been held up as a success story in recent months and as a survivor of the telecom downturn. Last March, the company announced an undisclosed third round of funding from CDP Capital Communications. CDP was one of several high-profile investors in the company, including Working Ventures Canadian Funds Inc., Particof & Co. Ventures Inc., Paribas Affaires Industrielles, and behemoth GE Capital. At press time, none of those financial partners was able to confirm or deny the information regarding Stream’s filing. At the same time as Stream won CDP financing, company president Steve Spooner told Network Letter that the firm, even with financing and a string of customer wins, wasn’t immune from the current turmoil in the telecom sector. "You tend to see – in most industries, not just the telecom industry – when any significant player coughs the smaller players tend to catch a cold. I think we’ve certainly seen that. There’s been some high profile failures. A lot of the major carriers have dampened earnings and growth expectations. That tends to put a chill on the sector and even a company that is doing well can find itself caught up in a malaise." Stream, if it has filed for receivership, joins a string of high-profile telecom failures over the past year, including Axxent, C1 Communications and Norigen. The Toronto-based company had shored up a healthy roster of partners and agreements over the past several months giving it access to four major cities in Ontario. The company had also secured exclusive Canadian rights to Sewer Telecommunication Access by Robot, a device that enables the laying of fibre within a city’s existing storm and sanitation sewers (NL, Mar. 12/01). Most recently, Stream struck a deal with the City of Toronto to deploy carrier-grade fibre throughout the city’s sewer system. The firm had previously secured similar deals with the cities of Mississauga, Ottawa and Richmond Hill.

Breaking News-Stream Intelligent Networks files for receivership, sources tell Network Letter

News | 02/26/2002 5:00 am EST

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