Verso Technologies files Chapter 11

Verso Technologies Inc., a provider of network products to telecommunications service providers, filed for Chapter 11 bankruptcy reorganization Friday in U.S. Bankruptcy Court in Atlanta.

The filing came three days after Verso (NASDAQ: VRSO) reported that its accountant included a "going concern" clause in Verso's recently filed 10-K annual report.

On April 15, the company reported that in 2007, it lost $27 million on revenue of $50.6 million. In 2006, Verso lost nearly $18 million on revenue of $42.5 million.

Content Continues Below

In its Chapter 11 petition, Verso listed total assets of $34.3 million and total debts of $36.7 million. The company has 72.8 million shares of stock outstanding. As of Monday morning, the shares were trading at 41 cents.