UK-listed Regus files for Chapter 11
Troubled support services firm Regus has filed for Chapter 11 bankruptcy protection in a New York district court as it attempts to return to profitability and reorganise its operations in the United States.
Link: Chapter 11 under fire
The company is believed to be attempting to force its US operations landlords to accept a 20% cut in rent.
According to The Times Chapter 11 is thought to have become necessary after a small number of the company’s 52 landlords were preparing to take legal action to wind up the company. The move will also give Regus a rent holiday of about a month.
The filing will cover the company’s US liabilities but will also include Regus plc, the group’s holding company and its US subsidiary.
The bankruptcy filing was made late Tuesday night and is thought to be the first time a publicly listed UK company has filed for Chapter 11 in the US. Regus currently has 122 offices in the US compared to 96 in the UK.
Regus founder Mark Dixon expects the company to be successfully restructured and emerge from Chapter 11 in one year.