yesterday that the US firm could recover from its current financial problems.

Mr. DeRoy Butterfield, chief general manager of NADS, admitted he was surprised when Wang filed for Chapter 11 bankruptcy protection in the US on Tuesday.

He said yesterday: "This is an unfortunate action taken by Wang. However, it must be emphasised that Chapter 11 does not mean that Wang is closing its doors.

"This action will allow Wang a safe harbour that gives them the opportunity to develop a plan to put its financial house in order.

"Wang's plans are to continue to make, support and service the VS line of minicomputers, of which NADS has installed 12 in Bermuda.

"It must be pointed out that this action by Wang does not in any way interfere with the business of NADS and its day to day operations.

"Our Wang installations/users will continue to receive full support and services. We expect Wang to be successful with its reorganisation, focusing its energies on a smaller and more competitive company.'' Mr. Butterfield said that Wang would continue to be competitive and would go ahead with new ventures.

He said: "In September, several months ahead of any competitor, Wang will begin shipping document imaging systems designed under its `open architecture' approach for the Wang RISC series hardware platform, which is being sourced through its strategic alliance with IBM.

"Wang also plan to announce other advanced software applications and products by year-end.

"It is Wang's belief that these advanced office productivity technologies, along with its strong service business, will provide a solid base for the company's survival and future growth.'' NADS, which has offices at Craig Appin House, Wesley Street, Hamilton, is owned by Bermuda Office Systems Ltd. and three individual investors.

Wang filed for bankruptcy protection after several years of losses and declining sales.

Observers said the company, which boomed in the 1970s and 1980s when it first pioneered word processors connected to minicomputers, failed to keep up with trends in the industry.

When the minicomputer was superseded by the personal computer, Wang only belatedly introduced its own line.

Wang also faced difficulties because its computers were based on proprietary technology which could not easily be connected to machines made by other computer companies or run software designed for other machines.

Computer users have been shying away from proprietary machines for a number of years because they don't want to be locked into any one manufacturer's technology.

Mr. An Wang, the Chinese immigrant who founded Wang Labs in 1951, made other mistakes. He used millions of dollars in debt to fund expansion. Costly interest payments contributed to the company's problems.

New chairman Mr. Rihard Miller made a bold gamble trying to save the company, creating an alliance last year with one-time enemy International Business Machines under which Wang is selling IBM computers while tailoring its imaging software to these machines in return for a $25 million investment.