Geoworks flees UK
Death by a thousand cuts
Geoworks, the moribund wireless software designer, is ceasing operations in the UK with immediate effect.
Teleca Ltd, the Swedish company which had offered to buy the UK business for approx. $1.8m last year, is taking on all Geowork UK staff and will do business with Geowork's customers. It is paying $500,000 for this right. It is also taking on the lease on Geoworks UK's offices, a liability estimated at $700,000.
So it's a better deal for Teleca, but why on earth couldn't Geoworks complete?
In a short statement released yesterday Tim Toppin, CFO said:
"Our efforts to get required shareholder approval failed because we were unable to obtain a quorum for the special shareholders meeting, despite an extensive proxy solicitation process and an 8 to 1 favorable shareholder vote."
Following the failure to gain a quorum for a meeting scheduled for January 8 to vote for liquidation as well as the sale of the UK arm, Geoworks said the company "must now rapidly assess its alternatives, including seeking bankruptcy protection".
Under the circumstances, the revised agreement with Teleca was probably the best that Geoworks could achieve. The alternative was going tits up in the UK. ®