Troubled UK B2B telecommunications solutions provider Energis has announced that it is to restate the value of its subsidiaries in its accounts. The move comes after the company revealed that the value of its assets is less than half of its share capital.
Energis is now required by UK company law to arrange an EGM in order to consider what action it will take in light of the situation. The company has also stated that it is in talks with its banks, its ad-hoc committee of bondholders, and potential investors to try to find a way forward for the company. Analysts predict that Energis may make a debt-to-equity swap or seek to be acquired.
The announcement follows the news that Energis had decided to stop funding its German and Swiss subsidiaries. Energis had previously failed to find any buyers for its German web hosting and Internet services subsidiary Ision Internet, which it only acquired just over a year ago in a $1 billion deal.