iBeam files Chapter 11, will be bought by Williams

Internet communication provider iBeam Broadcasting filed for Chapter 11 bankruptcy protection in a Delaware court yesterday in conjunction with Williams Communications has signed a deal to purchase almost all of iBeam’s assets for $25 million in cash.

The deal includes almost all of iBeam’s customer contracts and facility and equipment assets. In addition, Williams will give iBeam a loan to ensure that its operations continue until the asset sale is complete. The loan will be repaid from asset-sale proceeds.

Williams’ bid to purchase iBeam and loan operating funds to the company is subject to approval by the bankruptcy court. Upon approval, Williams plans on integrating iBeam’s streaming and Web casting business into it Vyvx Broadband Media unit.

Williams and iBeam formed a partnership in June, with Williams investing $20 million in cash and $10 million in services to iBeam in exchange for convertible preferred stock that represented 49% of the company.

--Amalia D. Parthenios, staff writer