Lloyds TSB Group and its venture cap arm Lloyds Development Capital (LDC) are about to offload Ramesys but it is unlikely they will recoup their massive £40m plus investment.
The loss-making Nottingham-based Microsoft Education LAR admitted in January that it does not anticipate breaking into profit until 2011 when it's mounting BSF projects translate into bottom line goodness.
According to LDC's website, it no longer counts Ramesys among its IT investment portfolio and it is understood that Barney Whiter, senior managing director at financial restructuring firm FTI Consulting has been tasked to sell it.
"The business is financially distressed and needs someone with a bit of clout to underpin the considerable investments in BSF bids," said a source.
Ramesys five year BSF order pipeline is in excess of £200m but is forecast to be worth more than £300m by the end of 2010 with four more bids in progress.
However Lloyds TSB Group, which upped its stake in Ramesys by converting £15m debt to preference shares in 2008, is believed to be reluctant to continue investing in the firm.
"Investors are looking to cut their losses and write off some of the debts," said another reseller.
Mark Chambers, CEO at Ramesys, gave a standard response: "The business is investor backed so if anyone comes in with the right money I am sure they'd consider it."
A spokesman at LDC, said it maintains a shareholding in Ramesys, "but we're not in a position to provide any comment or details at this stage".
FTI Consulting refused to comment.