New Delhi: An operating unit of the New York-based Bridge Information Systems, BridgeNews, which has a strong presence in India, is likely to see a change in ownership. The parent company Bridge Information Systems is keen to sell its newswire service BridgeNews, but so far it hasn't found any bidder for this unit. Even as Bridge Information has selected a bidder for many of its assets, BridgeNews is not a part of the deal, Mr Doug Morris, a Bridge spokesperson, told The Financial Express in reply to an e-mail questionnaire.Mr Morris has, however, clearly mentioned that the company is open to a complete sell-off due to the huge debts it has incurred. So far, Bridge Information has selected SunGard, a US-based financial information service company, for its bid to buy some parts of Bridge assets. ``Last week, Bridge Information Systems accepted an initial bid from SunGard for certain of its financial information businesses. This transaction, if consummated, would not include BridgeNews,'' says Mr Morris.
Meanwhile, the deal with Sungard is conditional. ``The SunGard bid is an initial bid. If the company receives a better bid for part or all of the company, it could supersede the SunGard bid,'' Mr Morris has said. Bridge Information Systems is selling its assets through an auction system. But says Mr Morris: ``At this time, Bridge Information Systems is not commenting on the asking price for its assets or the amount of the bids.''
On how the Bridge sell-off is going to impact its Indian business, Mr Morris says that it's difficult to decipher so soon. ``It is too early in the sale process to say what impact this will have. Because no sale has been finalised and the company continues to solicit bids, we cannot say at this time how this process will affect Bridge or its subsidiaries.'' However, if the SunGard sale is consummated, Bridge Information Systems will solicit bids for the remaining assets, according to Mr Morris. The remaining assets include BridgeNews.
Explaining the Bridge strategy for a sell-out, Mr Morris says Bridge has initiated a process to sell its assets because of a large, unmanageable debt burden. He adds: ``Because of this debt burden, Bridge Information Systems filed for protection under the US bankruptcy law (so-called ``Chapter 11'').''
Chapter 11 of the US Bankruptcy Code provides companies with relief from their creditors while they develop a plan or re-organisation, says Mr Morris. ``It is not to be confused with liquidation, or ``bankruptcy'' as it is commonly understood in most countries,'' he explains. As part of its Chapter 11 filing, Bridge Information Systems announced that it believed that a sale of the company's assets would be the best outcome for the company and its stakeholders, he adds.
Copyright © 2001 Indian Express Newspapers (Bombay) Ltd.
