Energis to shut down Swiss arm

THE Swiss arm of ailing communications group Energis is to file for insolvency in a move which may preface further shutdowns of other loss-making European units.

Energis said it would fund its primary European operations in Germany and Holland while talks with potential purchasers continue.

However, its failure to find a buyer for Zurich-based Energis Switzerland, and its decision to close the business with the loss of about 130 jobs, could preface the end of operations in France, Italy and Poland. Energis also has a 50% stake with Viridian in an Irish operation called nevada tele.com.

Energis confirmed that its banks were continuing to support its core British business, and that talks with bondholders surrounding a potential debt-for-equity swap continue. The firm owes more than £1bn and recently defaulted on a bond repayment.