A MAJOR sponsor of the Commonwealth Games faces financial crisis, it was revealed today.

Trading in shares of Atlantic Telecom plc, which has signed up to provide communications services worth £8m for next year's Games, has been suspended by the London Stock Exchange.

Shares in the company closed at 5p last night after a peak of £13.05 in February last year.

Games organisers have contingency plans and say they are confident Atlantic Telecom's situation will not create a problem.

Directors of the Scottish company have said it could be broken up and sold off if a new investor cannot be found.

Job cuts

Its workforce in the UK has been slashed from 1,070 to 470 since January. It employs 35 people in Manchester.

Atlantic has been overseeing the creation of a telecommunications infrastructure across the city in advance of the Commonwealth Games.

As well as providing telephone services for visiting athletes from across the world, the company has also promised to provide the competition's internet infrastructure.

An independent watchdog set up by the Commonwealth Games Federation visited Manchester last month to see at first hand preparations including those centred around technology.

Bruce Robertson, a technology consultant, who was a member of the independent team, said at the time: ''The major installation of the telecommunications network is planned to be done by the end of December by Atlantic.

''Everyone is well aware of the difficulties facing the telecoms industry but there are good contigency plans in place.''

Frances Done, chief executive of Manchester 2002, said: ''We are working very closely with Atlantic on the delivery of its obligations.''

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