Pilot Network Tells Users It Has Filed for Chapter 7

Pilot Network Services Inc., which provided Internet access and Web hosting to more than 200 businesses, told customers Wednesday that it has filed for Chapter 7 bankruptcy liquidation, and its remaining services could be halted at any time.

The news came in an electronic message to Pilot Network customers, who have been scrambling since last week to line up replacement Internet providers. A week ago, the company laid off all its employees and said it “does not expect to be able to resume operations in its current condition.”

Pilot Network, based in Alameda, Calif., has continued operations with a volunteer crew of former employees and some funding from customer Providian Capital, a major credit-card issuer.

Despite being a publicly traded company, Pilot Network officials have not issued any public statements about the bankruptcy. The customer message, issued Wednesday and attributed to Pilot Network founder and Chief Executive Marketta Silvera, said the company filed for bankruptcy May 1 in Oakland.