Brokat files for insolvency after bondholder negotiations fail

New York, Nov. 26 - Brokat Technologies AG said it made an insolvency filing Friday with the responsible local court in Stuttgart, Germany after negotiations with bondholders on a restructuring failed.

The Stuttgart-based software company said it had hoped to restructure the junk bonds and raise new capital to allow the company to continue.

But in an announcement Friday, Brokat said the effort to eliminate its "over-indebtedness" had failed and "no realistic possibility exists to change the present situation."

The company had been talking to holders of its 11½% senior notes issued in May 2000 on redeeming the bond as part of the proposed restructuring but those negotiations had not come to a successful conclusion.

Brokat eFinance Technologies GmbH & Co. KG, with 150 jobs, will continue after shareholders approved a spin off on Nov.12. Brokat will continue to look for new capital for this business.

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