Ask Group Inc, now based in Santa Clara, California will take a restructuring charge of about $45m to $47m against its fiscal third quarter figures to March 31, and also expects to report an operating loss for the period. The third-quarter results will also include a one-time charge of about $5m to increase the allowance for doubtful accounts, reflecting the more conservative accounting policies the company recently instituted. And other unusual one-time expenses were incurred during the quarter. The restructuring charge is for expenses related to closing unnecessary facilities, non-cash write-offs of purchased intangibles, reductions in the work force and other asset writedowns. The cuts and its new business plan have persuaded CIBC Inc and First National Bank of Boston to go to final negotiations on new bank loan terms and a new pact is expected to be signed this month. It had $20m cash on hand at March 31 to cover all immediate financial commitments. On the lay-offs, it expects to shed 100 employees via firings and attrition, from its current total of 2,100 by the start of next fiscal.
