Cable and Wireless plc will exit its US businesses by filing a Chapter 11 process for its Cable & Wireless America (CWA) operations and selling the assets for $125 million to Gores Technology Group. CWA is a provider of complex hosting and IP solutions for global enterprises. The companies said the Chapter 11 process would facilitate the sale by creating a substantially lower cost base, primarily through the elimination and renegotiation of certain lease and other contractual commitments.
Cable and Wireless plc, which said its intention was to exit the its US businesses for the least cost, will continue to be a provider for international communications to and from the US.
http://www.cw.com/
- In June 2003, Cable & Wireless announced a major restructuring and plans to withdraw from the U.S. market. Earlier in the year, Cable & Wireless had been optimistic that it could continue to build its business serving multinational enterprises and other carriers in the U.S. However, Cable & Wireless concluded that “there is not a long-term viable business model,” as its U.S. operations continued to consume cash and had had limited interaction with the rest of the Cable & Wireless group.