End of line anticipated
for Net access provider

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Creditors and U.S. Bankruptcy Court officials expected the tale of Optinet Inc., previously VivaNET Inc., to end yesterday.
Attorneys for the company filed a motion to withdraw its petition seeking Chapter 11 reorganization and protection from creditors. Court officials said there appeared to be no opposition and expected the motion to be granted.
Once withdrawn, the company would have no protection from its creditors.
In less than a year, Optinet/VivaNET fell from ranking among the top three Internet service providers in the area–trailing only Frontier Corp. and ServiceTech Inc.–to apparent liquidation.
The company had some 5,200 subscribers, 35 employees and more than $1 million in annual sales last fall. Creditors said they doubt the company has many, if any, remaining customers and no employees. Neither company officials nor its attorney returned calls.
The Optinet/VivaNET server–hosting Web pages, and providing e-mail and Internet access–stopped working eight days ago.
According to court records, Optinet/ VivaNET has $1.378 million in liabilities and $100,000 assets. Creditors said they expect secured creditor M&T Bank to liquidate the company’s assets, primarily equipment.
A spokeswoman for the bank said it did not plan to oppose the motion to withdraw and was working with the company regarding the next step. She declined to comment further citing customer confidentiality.
Charles Schwartz Jr., co-owner of LinkNY in Dundee, south of Rochester, and a member of the committee of unsecured creditors, said many creditors are former branch owners still in the Internet-access business.
“We don’t want them in business at all,” he said. “Shoot it! Don’t waste money on it.”
Schwartz said that by withdrawing the petition, the court will not protect the company from creditors. Its assets would be liquidated.
The end of Optinet/VivaNET has left customers and former business partners bitter and angry.
“It’s a nightmare,” said Randi Winterman, owner of Winterman Ink. She relied on the company for e-mail and Internet access. Her new business cards had her e-mail address–now defunct–through the company.
“It’s incredibly frustrating,” she said.
Winterman switched to Frontier because of its size, unwilling to work with any smaller, local providers.
Several local ISPs said they were seeing increased business after Optinet/VivaNET’s service stopped.