Interliant expects to run out of cash at end of Q3, hires advisor

New York, July 22 - Interliant, Inc. said it does not have enough cash to fund its operations beyond the end of the third quarter of this year and added that it has hired Traxi, LLC as a financial advisor.

The Purchase, N.Y. company said that it is considering all available options and Traxi will assist in looking at strategic alternatives, including further financial and operating restructuring, filing for bankruptcy protection or completing some other corporate transaction.

Market conditions have continued to weaken since the company filed its 10-Q for the first quarter on May 15, Interliant said in a news release.

In addition, liquidity has also been affected by a delay in the sale of one of its business divisions. Interliant added that even if the sale goes through proceeds will be significantly lower than it had assumed and they are not likely to be received by July 31.

Furthermore, Interliant did not receive a contingent payment for a 2001 asset sale by the expected date of June 30. The company still expects to receive the payment but said it may not be as much as previously anticipated.

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