FutureLink on brink of extinction

The US arm of the struggling application service provider FutureLink has filed for Chapter 11 bankruptcy protection, throwing...

The US arm of the struggling application service provider FutureLink has filed for Chapter 11 bankruptcy protection, throwing into doubt the future of its UK division.

The US parent said some months ago that it was considering the sale of its European arm, which has its headquarters in Berkshire. However, the UK operation refused to comment on this statement, and any potential buyer has not yet been identified.

Nasdaq suspended the company's shares on 14 August. Forced to divulge details of its financial position as a pre-requisite of gaining Chapter 11 status, FutureLink reported $126.3m (£87m) of assets and $16.9m of debts.

The company reported losses of $286.5m on turnover of $126m during the 2000 fiscal year. It is understood that FutureLink recently axed approximately 13% of its US-based staff.

Papers filed with the US Bankruptcy Court said FutureLink did not have sufficient assets to cover day-to-day costs. As a result, the intention was to close the company and sell its assets.

FutureLink was unavailable for comment.

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