LetsBuyIt Staves Off Bankruptcy with Eleventh-Hour Guarantee

25 January 2001

Cash-strapped etailer LetsBuyIt.com may now avoid being declared bankrupt today after securing a last-minute guarantee of 4 million euro ($3.7m).

According to the etailer’s acting ceo John Palmer, the eleventh-hour influx of cash has come from shareholders and incubator fund Kimvestor.

LetsBuyIt was last week given until today to raise the 4m euro necessary to guarantee fees and costs for its court-appointed trustee, Dutch law firm Van Doorne [WAMN: 23-Jan-01]. Failure to do so would have led to a declaration of bankruptcy at today’s court hearing in Amsterdam.

That hearing will go ahead as planned, but Palmer expressed confidence that LetsBuyIt would not be declared bankrupt. “The money will enable us to continue negotiations to secure the long-term survival of the company,” he explained.

However, LetsBuyIt still needs to find a further 40m euros to emerge from the red.

News source: Wall Street Journal