Xerox denies report it's planning bankruptcy filing
Last Updated: Tuesday, January 9, 2001 | 7:00 PM ET
CBC News
Xerox officials say they have hired Blackstone, but only as a financial advisor, and have no plans to file for bankruptcy.
"It is commonly known that Xerox has engaged a number of advisors, including Blackstone, as general financial advisors," Xerox spokesperson Christa Carone told Reuters.
Last month, Xerox announced a $7 billion line of credit had been used up but still had $1.4 billion in cash. Analysts say that should be enough to get the Stamford, Connecticut-based company through March.
"We believe our liquidity remains sufficient to meet our current and anticipated needs," Reuters quoted Carone.
Xerox shares have fallen nearly 79 per cent from their 52-week high after a rash of problems, including a bungled sales-force reorganization and increased competition. The company has also warned its fourth quarter losses would be worse than expected.
Also last month, the company sold its China operations to Fuji Xerox Co. for $550 million. And last week, Xerox announced it was moving its production line of digital office equipment to a plant in Mexico and cutting about 200 union jobs at a manufacturing hub in Rochester, NY.
The layoffs are part of a major overhaul plan to trim $1 billion US in annual costs. Since October, Xerox has cut more than 3,000 jobs.
The credit rating agency, Moody's Investors Service, cut Xerox's credit ratings to junk status last month. And the company was shut out of the short-term debt capital market.
Xerox shares on Tuesday closed at $5.87 US, down 50 cents US.
