Xerox denies bankruptcy story

Xerox is contradicting a report in Tuesday's New York Post claiming that it retained New York investment firm Blackstone Group to help it manage an impending bankruptcy.

While denying the bankruptcy charge, Xerox declined to explain its business with Blackstone, and would not confirm whether or not Newman is involved.

The company has lately been embarrassed by tanking share values, losing nearly 80 per cent from its 52-week high of $27, and last month's credit-rating downgraded by Moody's Investor Services. The company has been aggressively selling off assets in an attempt to maintain liquidity, and insists that this strategy is working beautifully.

Xerox owes Citigroup and Bank One $375 million each, and FleetBoston, $350 million. JP Morgan Chase is their biggest creditor at $750 million, the Post reports. No doubt all will be relieved to hear that the company's finances are on track despite appearances. ®