Irish telecoms firm Nevada tele.com has sought new funding options following the recent financial problems at Energis, the British firm that owns a 50 per cent stake in the company.

The disclosure by Nevada management followed an Energis announcement yesterday that it would sell its British business to a new firm run by its banks. Banks will control most of the Energis buy-out vehicle, Chelys, which will inject £150 million sterling (€233.5 million) new cash and equity. The British business will retain the Energis brand for commercial trading, but Energis's Dutch operation will be sold, and the future of the group's Irish and Polish joint ventures remains unclear.

Mr Les Harris, Nevada chief executive, confirmed yesterday that the firm had investigated methods of recapitalisation recently and was looking at all options open to the company.

"We've been working with the banks and shareholders to look at all options and this includes recapitalisation," he said. "There are people who view Ireland as an interesting place to invest. . . Recent decisions by the regulator and the Government's new broadband plan have created an interesting environment."

Mr Harris said Nevada management had not been party to the discussions involving Energis's deal with its banks. They expect to speak soon to management at the new entity.

Nevada provides telecoms and internet services to corporate clients and employs about 180 people in Ireland. It was founded as a 50/50 joint venture between Energis, a firm spun off by the National Grid in Britain, and Northern Irish electricity firm Viridian. Nevada moved into the Republic in July 2001 following its £36 million purchase of Stentor.

The sale of Energis is just the latest example of financial upheaval for global telecoms companies this year, capped by the record corporate bond default by cable group NTL.

Chelys will be chaired by Mr Archie Norman, a British Conservative MP and the man credited with the turnaround of supermarket group Asda before it was sold to Wal-Mart in 1999.

The money left over for bondholders and shareholders after the group's 16 lending banks are paid off will depend on how large Energis grows under new management. Energis owes banks around £700 million, and the banks! opted to run the firm instead of selling it to private equity bidders. Analysts said the deal left many questions unanswered.

- (Additional reporting by Reuters)