German Management Data files for insolvency
( 2001-07-18 11:13) (7)
The German media software company Management Data said Tuesday it would file for insolvency after failing to secure the backing of new investors.
Management Data, which makes software for television, radio and new media applications, joins the growing list of companies on the technology-heavy Neuer Markt segment of the Frankfurt stock exchange which have filed for insolvency in recent months.
Previous failures include the Internet services company Gigabell, the telecommunications equipment supplier Micrologica, telephone operator TelDaFax, and the online retailer LetsBuyIt.com.
"Talks held in the past with potential investors about providing fresh capital could not be concluded quickly enough to avert an insolvency filing," the company said in a statement.
Shares in Management Data shed 13.3 percent to 1.30 euros (US$1.12) before being suspended ahead of the announcement. But when German stock exchange operator Deutsche Boerse resumed trading in the stock, the share plunged 74 percent to 0.39 euros (US$0.34), 97 percent below a year-high of 11.50 euros (US$9.9) posted in January.