CyberCash said that it has filed for federal bankruptcy protection after it was unable to get financing to complete a merger with Network 1 Financial Corp., a supplier of payment processing systems and online payment services.
CyberCash, which processes credit card transactions for online merchants, reported $92.9 million in losses on sales of $23.3 million. The Reston, VA, company, which once employed 330 people, reduced its work force to 228 with two recent rounds of layoffs.
Network 1 Financial Corp. plans to buy all of CyberCash's operating assets. Outside businesses will be allowed to place competing bids for the company.