CyberCash Files Chapter 11

Reston, VA–CyberCash is out of cash. The company, which processes credit card transactions for e-commerce sites, filed for protection from creditors under Chapter 11 of U.S. bankruptcy law because it was unable to secure financing necessary to complete a merger with McLean, VA-based Network 1 Financial Corp. While the merger is off, Network 1 plans to buy CyberCash’s operating assets, although other businesses will be able to make competing bids on the assets, according to wire reports. CyberCash reported $92.9 million in losses on sales of $23.3 million in 2000. The company recently laid off 228 of its 330 employees, including 90 in Bangalore, India.