VoIP Inc. defaults on Verizon $8 million

VoIP Inc. has issued an 8-k SEC advisory admitting it failed to make a Feb. 1 payment to Verizon and that Verizon has declared VoIP Inc. to be in default of an $8 million settlement agreement. VoIP Inc. also admitted Verizon has rights over all the companies assets if it choses to enforce and collect its remaining $7.4 million owed. "Such actions if pursued by MCI and permitted by the agreement would have a material and negative impact on the Company's financial condition, and would impair the Company's ability to continue its business," the company said.

The statement about impairing the company's ability to continue business must be a candidate for bad joke of the year. No customers, no network, no web site, no staff to answer the telephone, no chief accountant or technical officer. VoIP Inc. is now but a shell. But amazingly the company still trades on and for less than a penny you can still buy shares in VoIP Inc. The company literally self-destructed over the last month. Despite a last minute PR blitz claiming its click-to-call technology was worth a cool $1.25 billion, VoIP Inc. is just awaiting burial.

Whether Verizon ever sees any of its money is another thing. A poster purporting to be former chief accountant Robert Staats told investors on a forum that the private equity investors who threw money at the company when it was in its final death roll have superior rights to everyone.

For more:
- VoIP Inc.'s latest 8-k statement
- Investorhub has been a forum for investor, vendor and ex-employee discontent

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