Genuity Inc., a data-network operator that defaulted on $3 billion in loans, will seek bankruptcy protection and plans to sell most of its assets to Level 3 Communications Inc. for $240 million, people familiar with the matter said.
Genuity was unable to pay interest on $3.15 billion in loans after Verizon Communications Inc. opted not to buy back a stake in August. An announcement is expected this week, the people said.
