Evercom near bankruptcy

Evercom, the largest Nordic PC manufacturer, faces a profound crisis with mounting debts and impatient creditors. The board has a deadline of end January to solve the firm's grim financial problems.

"We are now negotiating nearly around the clock with major creditors to create a solution about our debt. At the same time we are continuing our efforts to land new investors," said board member Einar Clausen.

Evercom has scrapped plans to attract NOK 15 (USD 1.68) million in additional investment after being unable to find help in a dead capital market.

Credit insurance company Gerling has given Evercom a credit rating of zero, which means that subcontractors demand cash payment. Evercom's problem is that their cash flow is drying up, and with PC sales rising, this means they may lose a natural way to improve their financial situation.

Evercom has also had delivery problems despite slow sales in the first three quarters of 2001. Production was moved from Denmark to Sweden last summer and the Danish subsidiary was declared bankrupt.

Clausen blamed many of Evercom's current troubles on the misguided purchase of Danish Datagrossisten in 1999.

"This turned out to be a very bad firm, and it cost us dearly. This poor investment is the main reason for the problems we are now facing," said Clausen.