Out-Law News | 27 Jul 2001 | 12:00 am |
Scoot.com admitted on 27th June that it could not fulfil its funding obligations towards Scoot Europe and at that stage entered into negotiations with Vivendi to resolve its financial situation. If Scoot.com had not made the decision to sell up, it would have been forced to file for bankruptcy on 27th July, since the Belgium subsidiary of Scoot Europe would have been unable to meet its salary obligations.
In an attempt to raise vital funding, Scoot.com is considering disposing of classified publishing group Loot UK or securing bridging finance against the assets of the company of up to £15 million. It suggests that the most feasible option is the disposal of Loot UK. The company had previously announced 285 job cuts and last month its chief executive Robert Bonnier resigned.