The Vienna Stock Exchange regulators took the somewhat drastic step of suspending trading in shares of the Vienna-based software enterprise YLine early on Thursday afternoon. The announcement was followed by a statement which stressed that the suspension was only temporary and would be lifted when the company was able to reveal important information concerning to the quarterly reports.
According to Michael Obermeyer , spokesman for the remediator Anton Stumpf who was hired last week by YLine to oversee the restructuring process, trading was halted on suspicion of insider trading.
Shortly before trading was suspended, YLine had dropped 48 per cent to an all time low of Euro 0.46.
According to Obermeyer, the remediator is involved in round-the-clock negotiations to finalise a restructuring package for the troubled enterprise. The main stumbling block in negotiations so far has been the cooperation agreement with IBM. It is clear to insiders in the industry that if no agreement can be reached with the computer giant, YLine will have no alternative but to file for bankruptcy.