NetWolves Corp. On The Endangered Species Lists

Did the news media really cause NetWolves Corp. to file Chapter 11?

According to a Michael Hinman article in the Tampa Bay Business Journal Scott Foote CEO of NetWolves Corp.:

“In a press announcement about the bankruptcy, Foote blamed the need to file for bankruptcy on "certain press reports" that he said "inaccurately attributed statements to the company about continued operations." Because of that, Foote said, some of NetWolves' (OTC BB: WOLV) vendors tightened their credit terms and began to demand payment on accounts.”

If the articles printed such substantive inaccuracies, then liability should be attached and they could be argued to a positive outcome.

Nowhere on the NetWolves web site do the list any of their facilities or staffing.

From the article:

“In reporting its third quarter results to the SEC last week, the company's 10QSB filing said, "The company's main source of liquidity has been equity and debt financing, which has been used to fund continuing losses from operating activities. Based on the company's cash position of approximately [$800,000], and further taking into account ongoing litigation expenses as well as the current maturity dates of the company's long-term debt, the company believes that they may not have sufficient cash to meet the company's funding needs through March 31, 2008 ...”