Just how bad can things get at Vonage?

The Wall Street Journal reports that Vonage auditor BDO Seidman says there is "substantial doubt" the Internet telephony pioneer can continue as a going concern. Vonage last week said its fourth quarter losses were $13.8 million, 24 percent higher than the $11.1 million in losses it reported in a February press release, and said it ended the year with a $217 million working capital deficit.

Vonage wants to alter the terms of a $253 million debt payable in December, telling the SEC earlier this month that a cash outlay that large would threaten its ability to operate. Vonage says it may up the interest rate to make the notes more appealing as longer-term investments, and might be able to pay some of the issue with cash or equity-type securities.

Vonage interim CEO Jeffrey Citron last month told analysts the resolution of the $253 million debt was the company's major priority. 

For more:
- Check out the Wall Street Journal article 

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