Verilink Corp., which filed for bankruptcy protection last month, said Friday it will be sold at auction this month.

According to a regulatory filing issued Friday evening, an order was entered by the U.S. Bankruptcy Court for the Northern District of Alabama May 1 authorizing the sale of the company and its subsidiaries “in an auction process intended to generate the highest and best price for the company’s business.”

The order calls for the sale of all of the company’s assets, for a minimum $7.5 million bid, to be submitted to the court before May 22.

Verilink, which has operations in Madison, filed for Chapter 11 bankruptcy protection and cut 20 percent of its work force April 6. The company experienced a $37-million loss in fiscal 2005. The company said Friday its liabilities as of March 31 were at least $16 million. On its bankruptcy filing, the company listed debts of about $26 million, including several North Alabama electronics firms.

Verilink, which makes telecommunications equipment, hasn’t been profitable since 2003, and sustained losses for several years prior to that. It’s stock was delisted from the Nasdaq April 19.

The company also said charges of $9.7 million should have been taken in the quarter ended March 31, based on a drop in revenue and lack of cash to continue operating the business.

Posted: 05|6|06 at 3:46 pm. Filed under: US News.