Yipes files for Chapter 11

Metropolitan Ethernet provider Yipes Communications filed for Chapter 11 bankruptcy protection late last Friday in an effort to keep its operations running.

Yipes CEO Jerry Parrick says the filing was necessary, because Yipes was unable to raise new capital to fund its ongoing operations and was facing a cash squeeze. By filing for Chapter 11, Yipes will have access to debtor-in-possession financing, which will help tide the company over until it can restructure.

Customers should experience no disruptions of service, Parrick says.

Yipes was one of the first companies to aggressively push the adoption of Ethernet in metro and long-haul networks.

Company officials have always been bullish on Yipes' prospects, most recently publicizing the fact that the firm's sales grew 64% in 2001. Since Yipes is a privately held outfit though, the company did not have to publicly disclose its financial figures.

The first signs that the company could be in some trouble emerged late last year, when Yipes made an undisclosed number of layoffs.