Energis bails out of Germany

Cash-starved British telecoms group Energis Plc called time on its German unit last week, saying it had stopped funding it because a sale was unlikely while the group tries to rebuild its finances. A sale of the German business had been the preferred exit route, and Energis said it was still looking to sell its Dutch unit and exploring options for its Energis Polska joint venture. Jarosław Mikos, Energis Polska's president, earlier this year told the WBJ that finding an investor was "the main drive for the business at the moment" and that Energis Polska is in the early stages of discussions with 12 prospective financial investors and strategic partners. "If the business is properly managed and any kind of extraordinary events don't happen, we should be able to run the business for the next 12 months easily," he said in March. The British Energis has been driven to near ruin amid a deep industry-wide slump. The company last week admitted its core U.K. business may be sold. Energis got into trouble with its lenders in January because its earnings fell below agreed levels, with prices for wholesale telecoms capacity having fallen through the floor. The German move represents the latest stage of Energis' retreat from continental Europe, following the closure of its Swiss business just over a month ago. — Staff and wire reports