Arix Corp has been depending on IBM Corp winning the US Treasury contract that went to AT&T Co last week to get it out of its current financial woes: however, reports that Arix will instantly dematerialise are exaggerated, according to company chief Gene Manno. His creditors, owed around $5m, are being understanding, because of the Federal Courts bid they won together. Arix could resign itself to being just a $25m company, Manno claims, and survive looking for new business and filling its $3m order backlog. Just what plan B will be, however, is still under discussion. It always seems to happen these days, and IBM, which put up the Arix systems as the would-be prime contractor, could decide to protest the award provided it can muster an unfrivolous case. Such is certainly a well-travelled route: something over 60% of the Treasury’s awards reportedly get overturned. The two have until Wednesday July 24 to lodge a protest.
