Exodus Communications Files for Chapter 11
SAN JOSE, Calif. (AP) -- Burned by the dot-com blowout and costly growth investments, Web-hosting concern Exodus Communications Inc. filed for bankruptcy protection, but said its business will continue to operate.</br></br>Exodus, a Santa Clara, Calif., provider of services to major sites including Yahoo and eBay, has warned for months that it was quickly running out of cash and needed additional financing to stay afloat.</br></br>In addition to the Chapter 11 filing in U.S. Bankruptcy Court in Wilmington, Del., Exodus said it received a commitment for up to $200 million in debtor-in-possession financing from General Electric Co.'s GE Capital.</br></br>"We will now be able to devote efforts to solidifying and executing on a go-forward operating plan that is based on tough-minded fiscal discipline and focuses on managing Exodus to profitability," said L. William Krause, Exodus' chief executive.</br></br>It wasn't immediately clear whether the filing would lead to customer defections. Yahoo Inc. officials were looking into the situation, spokeswoman Shannon Stubo said. EBay Inc. didn't return a telephone message.