High-speed Internet infrastructure provider I-Quest is to announce this week the injection of new funding which will help keep the financially-troubled company afloat, according to sources.
The company was also in the final stages of discussions about a possible merger with competitor Singapore-based View Internet, amid continued consolidation of the industry, they said.
The merger would be the latest step in I-Quest's restructuring plan, which last month saw it close five of seven international offices and cut about 15 per cent of its 160 staff worldwide.
I-Quest officials would not confirm the restructuring but said a corporate announcement would be likely today. A source said I-Quest had recently secured a small round of fresh investment.
View Internet is 30 per cent-held by Kerry Technology, a subsidiary of Kerry Group, which also controls South China Morning Post (Holdings) and hotel group Shangri-La Asia.
Set up in 1996, I-Quest focuses on installing equipment in high-end hotels targeting mainly business travellers needing broadband Internet access.
Hotel partners include Hyatt International, Britain's Thistle Group, Hilton, Ritz-Carlton and Shangri-La chains.