Dotcom can't meet payroll

Internet company pAsia (資迅人) said yesterday that severe financial difficulties would leave it unable to pay employees' salaries due on Monday.

The company, which operates online Chinese-language auction site CoolBid.com (酷必得) and several e-commerce and instant messaging services, has nearly depleted its cash supply, according to pAsia's chief operating officer, Lawrence Ho (賀元).

"Although our 2000 business turnover grew 300 percent to NT$300 million from a year ago, we expanded too fast and spent too much last year while we were seeking an initial public offering in the US," Ho said.

But for the time being, pAsia has no plans to ax its roughly 90 employees in Taiwan and 60 staffers in China, Ho said.

Despite the cash crunch, Ho said the company's existing online operations such as CoolBid.com and 8d8d.com will remain operational.

Ho declined to specify how long the company will go without paying employees' salaries.

Ho said pAsia will negotiate with suppliers to temporarily hold the companies' outstanding checks while it seeks partnerships with potential new investors.

Ho wouldn't comment directly on a much talked about merger with the US-based e21, saying only that both parties have maintained a solid strategic and technical partnership.

Ho and Heidi Hsueh (薛曉嵐) founded pAsia in 1995 while the pair were graduate students.