ireless transaction processor U.S. Wireless Data (USWD) announced on March 26, 2004 that it filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code.

The company said it could not generate enough revenues to reach profitability or secure additional funding sources adequate to continue operations. It reported a net loss of $2.85 million in 2003, despite increases in 'active sites' using its gateway services (from 15,400 to 34,100) and number of transactions processed (up 55% in Q4 over Q4 2002). USWD will sell its two primary business activities, which combined, essentially comprise all of its assets.

USWD will sell its Synapse point-of-sale gateway business to NBS Synapse Corp. for $2.85 million in cash, plus up to $2.15 million worth of free payment processing services that USWD will provide for its vending operations. NBS is indirectly majority-owned by Brascan Financial Corp., a Toronto-based company that provides asset management and merchant banking services.

SANI Operating Co., LLC will buy USWD's vending operations, including the credit for processing services through NBS, for $1.6 million in cash, plus the assumption of certain liabilities.

USWD said that until the sales of the businesses are completed-under Bankruptcy Code, the transactions are still open for bidding by other parties and are subject to approval by the U.S. Bankruptcy Court-service to its customers will continue uninterrupted. The sales are expected to be completed by May 21, 2004.

The company filed its petition for protection in the U.S. Bankruptcy Court for the Southern District of New York.

USWD has been in business for 13 years, providing value-added, proprietary enabling solutions and wireless transaction delivery and gateway services for credit card processors, merchant acquirers, banks, ATM distributors and their respective sales organizations. Consumers can scan cards wirelessly through USWD solutions used by merchants and vending operators like PepsiCo; USWD primarily used slow-speed data-only networks from Cingular Wireless and Motient Corp.

Company representatives from USWD have also served on The Green Sheet Advisory Board in the past.