Viatel Inc., the co-title sponsor of the Mercury-Viatel cycling team, filed for Chapter 11 bankruptcy on Wednesday. The New York-based telecommunications company, which specializes in European telecommunications networks, lost $1.57 billion last year. On Wednesday, the company fired 350 people, adding to the 700 people that were cut in February.
In a statement issued Wednesday, Viatel claimed that the Chapter 11 filing will not have any effect on its business in Europe, conducted by separate European subsidiaries with enough liquidity to continue normal business operations.
The bankruptcy filing isn’t expected to have an immediate effect on the Mercury-Viatel team, however the long-term outlook wasn’t immediately clear.