The internet retailer LetsBuyIt.com has been rescued from immediate
bankruptcy and could receive up to E50 million (£31.5 million) from
a German venture capitalist. Reports suggest the company will soon
resume trading, having stopped just after Christmas.
Last week, the company’s trustee brought bankruptcy proceedings
before an Amsterdam court. The court denied the request for
bankruptcy, in part because creditors said they were not properly
consulted about the proposal. The court gave the company five days
to find E4 million (£2.5 million) in additional funding or bank
guarantees to meet the costs incurred by its trustee. The money was
secured from existing investors and Kimvestor, a venture capital
fund based in Munich, just before the deadline last night.
Kimvestor has expressed interest in helping LetsBuyIt.com find a
further E50 million which would exceed the sum the company believes
it needs to attain profitability. The Belgian office of
LetsBuyIt.com confirmed today to OUT-LAW.COM that E50 million has
been promised, but further details were not disclosed.
LetsBuyIt.com will need additional funding by the month’s end to
stop its trustee, a Dutch law firm, bringing further bankruptcy
proceedings.
