C&W Division May Declare Bankruptcy

• By theWHIR.com , November 06, 2003

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November 6, 2003 -- (WEB HOST INDUSTRY REVIEW) -- According to unnamed sources, the U.S. Web hosting division of Cable and Wireless (cw.com) is expected to file for bankruptcy Friday evening.

The latest developments come on the heels of reports in September that Cable & Wireless was in the midst of discussions to sell its U.S. hosting operations and had reduced a list of potential buyers to two.

Since announcing in June that that it was exiting the U.S. market amid heavy losses, the UK-based carrier has been unsuccessful in its attempts to sell its embattled division.

At the time of the June announcement, it was expected that the UK-based carrier would have difficulty find a buyer due in large part to its lengthy data center leases.

Recent analysis by Ed Agar, co-founder and Principal of IT advisory firm PrimeSourcing Advisors, outlined Cable and Wireless' alternatives as twofold: sell the assets and existing contracts to an interested suitor, or declare bankruptcy.

Sprint (sprint.com), the fourth largest telecommunications carrier in the United States, also announced in June that it was exiting the Web hosting market.

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