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Article: A new chapter or just a new twist on the old one? The second bankruptcy wave will occur when Chapter 11 companies fail again. (special report).(Industry Overview)
- Article from:
- America's Network
- Article date:
- February 15, 2003
- Author:
CopyrightCOPYRIGHT 2003 Questex Media Group, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Picture the scene: too many carriers, all with similar business models, unleashing huge amounts of bandwidth onto a saturated market and chasing the same limited group of large multinationals.
What happens? They not only drive themselves into the ground, but they also trigger a slump in confidence across the entire industry. Their debt is driven down to junk status, and their share prices tank on expectation of restructuring. They stop spending, and they send the rest of the sector into free-fall.
Sounds like a potted history of the last two years. In fact, this is what some observers are predicting is going to happen again in about 2004.
This ...