Regus Expects To Come Out Of Chapter 11 in 6-12 Months
The following is an excerpt from an article that appeared today in the Financial Times in London and can be viewed in its entirety at www.ft.com.
"Regus American arm files for Chapter 11 By Norma Cohen, Property Correspondent, FT.com site; Jan 15, 2003
Regus, the struggling serviced offices provider, filed for protection from its US creditors under Chapter 11 of the bankruptcy code after it failed to reach agreement with its landlords on sharp reductions in rent.
The filing, which is only in respect of US liabilities, covers both the US entity and the exchange-listed vehicle, Regus Plc, which has given guarantees in respect of some rents.
In December, Regus said that its US operations are losing 2m per month, although its UK business is profitable and its other European operations are breaking even.
Regus occupies 87 buildings in the US, with the greatest number on the west coast where the so-called dot-com boom drove rents up sharply through 2000."
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