Letsbuyit.com to meet with bankruptcy in the wings
( 2001-08-02 11:48) (7)
The supervisory board of financially troubled Internet company Letsbuyit.com is to decide on the company's future at a meeting in Munich Thursday, the Dutch daily Financieele Dagblad reported Wednesday.
The newspaper said that bankruptcy had not been ruled out.
The company has faced the prospect of bankruptcy since last month when an investor, Shmulik Stein International, refused to inject 30 million euros (US$26 million) as promised, the newspaper alleged.
The supervisory board meeting was a "regular" one, board member Frank Verschoor told the daily. He also said: "We will look into whether they (Shmulik Stein) want to, can or must invest."
He said that "one option would be to discontinue operations" if Shmulik Stein did not provide capital.
The company had already faced bankruptcy last January when administrators told management that four million euros had to be paid to debtors or it could be liquidated.
The British company, which is incorporated in the Netherlands and listed in Germany, succesfully raised the money and escaped liquidation.
LetsBuyit.com then said on February 6 that it had secured 52 million euros, of which 20 million euros were immediately available and 32 million would be provided once the company completed a restructuring.
Of the total Shmulik Stein International was to provide 30 million euros.