Asset sale 'not enough' for VTL

VTL Group said yesterday that the sale of assets by its United States subsidiary Service America would not cover repayments to creditors.

VTL Group had planned an orderly sale of assets to get out of financial trouble, after becoming insolvent when its finance company, Nathans Finance, collapsed.

The proceeds were insufficient to repay all of Service America's secured borrowings, VTL said.

VTL is owed about US$7.2 million by Service America and its subsidiaries.