Great Basin Internet Services, founded in Reno in 1993, filed for Chapter 11 bankruptcy reorganization in Reno.
Vice President Bruce Robertson, majority owner of the company, says the softening economy and rising costs resulted in GBIS' financial woes. Court documents show that the company is behind more than $183,000 in taxes to the Internal Revenue Service, and owes more than $341,000 to AT&T. In total, the company is in arrears for $706,844.
But GBIS' 5,000 subscribers have no need to be concerned about a loss of service, Robertson says.
"None of them need to worry," he says. "There will be no disruption in service we took the steps to help guarantee that. We encourage our customers to stay with us. As we reorganize and come out of Chapter 11, we will continue to provide them the excellent service we always have."
Robertson says GBIS' concentration is providing high-speed bandwidth to
business and residential customers, as well as Voice-Over-Internet-
Protocol services and Web hosting. Robertson says the company lost a large percentage of its revenues as a high number of dial-up Internet customers switched to other services or Internet Service Providers.
"We still have an amazing number of dial-up customers, and we love them, but gradually they are moving to other services that may not have the same profit margin, or they go elsewhere," he says.
In order to move out of Chapter 11 reorganization, GBIS plans to increase sales and reduce expenses. The company employs 18 at its Ridge Street headquarters and does not expect any layoffs.
"These things can take six months to five years," Robertson says. "Sooner is better of course, but our customers will see no disruption in service."
