BUSINESS Internet service provider Onyx Internet has gone into administrative receivership.

The Middlesbrough-based business, was put in the hands of the administrators in December after financial difficulties, putting the jobs of its 50 staff under threat.

A statement from the company on its Internet site simply said the company was in administrative receivership and was in the process of being acquired by a management buy-out team.

The statement read: "Due to the fact that our parent company defaulted on a loan, Onyx Internet Ltd is currently in administrative receivership and has been since December 15.

"We are pleased to announce that the company is in the process of being acquired by a management and employee buy out team.

"This acquisition is expected to be completed in early January."

Joe McLean from Grant Thornton is handling the receivership. He said: "I can confirm that the company is in receivership, but I can say very little else at this time.

"Negotiations with a buy-out team are at a delicate stage and there are still a few matters to be resolved. I hope that a deal can be reached within the next four or five days."

Onyx Internet provides a wide range of quality Internet services specifically for the business market.

In the past year the company has been concentrating on the roll-out of high-speed ADSL technology, and in September created a number of new jobs to support the nationwide launch of the service.

ADSL offers business Internet connection up to 40 times faster than the ordinary BT telephone lines.

The new ADSL service replaces the traditional modern dial-up facilities and helps businesses and consumers alike make massive improvements in the efficiency of their Internet use.