"Despite thorough assessments, Telenor has concluded that there no longer exists basis for further financing of the company Itworks. None of the solutions discussed have been found to be economically feasible," says vice president and member of the corporate management of Telenor ASA, Mr. Bjørn Formo, in connection with the decision to wind-up the company. The Telenor Group has loans and other claims in Itworks of more than 110 million NOK. This is considered lost as a result of the wind-up petition.
Before the wind-up petition from Itworks, Telenor and the other owners carried out a series of attempts to secure the continued existence of the company. “Towards the end of 2001, Itworks was supplied with 60 million NOK in fresh capital in the form of a loan. There has also been done several attempts to sell the company, but no acceptable bids have been received. With the great losses incurred in 2001 and this year, and with further losses expected due to failing market conditions, we unfortunately had no other choice than to decline further financing from our side,” comments Bjørn Formo. The other owners have reached the same conclusion.
Telenor will arrange that the customers of Itworks, who have contracts directly or indirectly with Telenor, will not suffer from the wind-up, provided this is in line with the wishes and demands of the administrator.
Itworks is owned by Telenor an EDB Businesses Partner, each with 45 per cent, while the Thrane Group holds 8.8 per cent. The company was established in January 2001 and delivers information and communication technologies and consulting services within voice, data and videoconferencing solutions. Itworks has 380 employees in Norway.