The Financial Times is reporting that Bridge Information Systems is "on the brink of bankruptcy" after one of its creditors filed a petition to wind up the troubled market data firm on Thursday.
The involuntary bankruptcy petition was allegedly filed by Highland Capital Management, a Dallas-based fund management company which is owed $26 million by Bridge.
"Good faith negotiations broke down and we felt creditors would be better served by this action," the FT quotes Highland as saying.
The FT says other substantial creditors include Dow Jones which last week wrote off its remaining $80m investment in Bridge and said it had guaranteed a $250m data contract on behalf of the company, and Merrill Lynch.
Venture capital group Welsh, Carson, Anderson & Stowe had been putting together a rescue package for the ailing firm which would have injected a further $100 million of equity into Bridge while its debts were restructured.