Staples Ltd. a million-dollar rescue package.

And Bermuda Broadcasting Co. chairman Mr. Perry is also set to buy Staples Holding Limited's other subsidiary, medical suppliers Atlantic Medical International, with an official announcement due next week.

In a deal with senior management, Mr. Perry is to step in as the new owner of the two subsidiaries months after the shares of cash-strapped Staples Holding Limited were suspended from trading on the Bermuda Stock Exchange.

Staples Limited president and CEO Michael Johnson said for the past three months management had been working with the Bank of Bermuda to restructure the office supplier's debt and to find investment capital to inject cash into it.

"This acquisition accomplishes both of these objectives. In return for a substantial cash infusion, the new investors will acquire the shares of Staples Limited from the Bank of Bermuda,'' he said.

The deal is due to close within a fortnight.

But Mr. Johnson kept the exact figure Mr. Perry would pay to buy Staples a secret, although he said it was a substantial seven figure sum less than $2 million.

At this point it is unknown what Mr. Perry will pay to acquire Atlantic Medical International in a separate deal which is not yet official.

Mr. Johnson stressed yesterday that the former structure of the group, along with its massive debt had eaten away at cash flow, causing the liquidity crash, while its operating entities remained strong.

The company endured a 19 percent drop in sales for the first half of its fiscal year to September 30, 1998, and declared a six month loss of $236,019 before warning shareholders to expect further losses.

Perry presents rescue package That contrasts with a fairly healthy half-yearly profit of $463,792 for early 1997.

According to their last annual report Staples Holding Limited owed about $3.32 million in short and long term loans to the Bank of Bermuda and the Bank of N.T. Butterfield at September 30.

With only $2 million in assets some pundits feared the company was on the verge of insolvency unless its problems were solved.

He said Staples Limited could now focus on initiatives it began last autumn to differentiate itself from its competitors, including a supply-chain management contract to sell the Bank of Bermuda all their office supplies.

Staff cutbacks -- mostly voluntary -- have seen its work force drop from 70 to a leaner "but more efficient'' 50, while the company is now operating only from one location rather than three.

"The business still has a lot of opportunities despite the cashflow situation. Our customers have continued to support us and sales have been strong for March, April and May,'' Mr. Johnson said.

He said after getting its fingers burnt on the BSX in February it would remain a privately held company for the foreseeable future.

Chief financial officer Wilena White said the bottom line of yesterday's deal meant the company would continue operating and staff would not lose their jobs.