The move, which came after Regus US failed to reach an agreementwith landlords in time, will give the company temporary legalprotection from creditors while it reorganises its leaseholdportfolio. It will also enable Regus to retain key management staffseen as crucial for the future of the business.

Documents filed with the court put consolidated assets in theAmerican operations at £553 million ($887 million) and liabilitiesat £291.8 million ($468 million). The parent company alone listedtotal assets of £354.3 million ($568.4 million) and total debts of£17.4 million ($28 million) in its Chapter 11 filing.

With few freeholds in its property portfolio, management isshort of options. The chapter 11 filing is the second major move bymanagement to deal with a cash crisis that has engulfed the companyas a result of rapid expansion at a time of high rents followed byfalling occupier demand. Last December, Regus agreed to sell a 58%stake in its UK business for up to £57 million ($91.4 million).