US Report: Hayes declares bankruptcy

Veteran modem maker Hayes Corp. declared bankruptcy today, saying it will continue to operate while looking for additional funding.

The company had announced a restructuring in August amid losses of $14.2m (£8.7m). At the time, Hayes said it planned to put its Norcross facility up for sale and focus on cable modems and other high-speed devices.

Hayes said today that it would continue to "resize" its operations and narrow its focus on the broadband, remote access and voice-over-IP markets. The company filed petitions to reorganise under Chapter 11 of the Bankruptcy Code. Under Chapter 11, Hayes will continue to operate under court protection from creditors, while seeking to work out a reorganisation plan. The petition was filed in U.S. Bankruptcy Court for the District of Delaware.

Hayes has secured interim financing and is negotiating for permanent financing, officials said. "We made the decision to seek the protection of the Bankruptcy Court in the belief that this action would provide the most viable means of achieving our key goals of refocusing our business strategy and operations," said CEO Ron Howard in a release.