CyberCash Files for Bankruptcy
RESTON, Va. (AP) _ CyberCash Inc., which processes credit card transactions for online merchants, filed for federal bankruptcy protection because it was unable to secure financing necessary to complete a merger.
The Reston-based company had hoped to merge with McLean-based Network 1 Financial Corp, but it could not come up with enough capital to finish the deal.
CyberCash on Friday filed for protection from creditors under Chapter 11 of U.S. bankruptcy law.
For its part, Network 1 plans to buy all of CyberCash’s operating assets. Other businesses will be able to make competing bids.
CyberCash once employed 330 people, but two recent rounds of layoffs reduced the work force to 228, including 90 in Bangalore, India.
CyberCash chief Financial Officer John Karnes said the fate of the company is unclear.
In 2000, CyberCash reported $92.9 million in losses on sales of $23.3 million.
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