Xerox denies rumors of bankruptcy

Will Astor//October 13, 2000//

Listen to this article

Xerox Corp. today moved to squelch rumors that it is readying a Chapter 11 bankruptcy.
Since Xerox (NYSE: XRX) warned analysts of yet another disappointing quarter, speculation of such move has been flying in Internet chat rooms.
The stock was trading at 2:30 p.m. at $10.63, down 5.5 percent from Thursday’s close, but rebounding from its low today of $10.
Last week the document company said it would substantially miss third-quarter earnings and revenue targets. It followed that glum news with an announcement that it would cut its quarterly dividend from 20 cents a share to 5 cents.
In a statement today that did not directly refer to the bankruptcy rumors, Xerox said it would stick to long-standing policy of not commenting on rumors and speculation, but it is not suffering a cash shortage.
On Wednesday, the document company stated in an Securities and Exchange Commission filing that it has a 12-month, $7 billion revolving credit agreement.
Xerox shares have lost more than 80 percent of their value over the past 12 months.
Xerox chairman Paul Allaire and Anne Mulcahy, president and chief operating officer promised to release a sweeping plan on Oct. 24.
In other news, Xerox revealed today that an Israeli reservist killed in recent clashes between Jews and Arabs in Israel was a Xerox employee.
Yossef Avrahami, 38, was one of two soldiers lynched Thursday in the West Bank town of Ramallah. He worked in the billings and collection department of Xerox Israel Ltd.