"The company is definitely in liquidation mode but a firm decision on the future has not been made. By the end of today, we'll know where everything stands," a senior company official, speaking on condition of anonymity, told atNewYork.com.

In a statement, the company said it "may be obliged to cease operations if immediate financing cannot be obtained. There is no assurance that the company will be successful in obtaining such financing."

In the meantime, company officials are taking extra measures to raise cash. By this afternoon, VCIX (a network of content sites for North American-based expatriates) is expected to consummate a cash deal for the sale of VirtualJerusalem.com, its main Web site. The sale could help the company meet payroll.

"It is extremely probable that this sale will go through sometime today. As of this morning, even in light of everything that has happened, the buyers are determined to close this deal," the source said.

"As of this very minute, we're not closing down. We're right in the middle of meetings with potential buyers for VirtualJerusalem.com. But, based on what is going on, anything can change."

In a meeting with staffers this morning, the company's CEO Avi Moskovitz warned that today's scheduled fortnightly paycheck may not be forthcoming.

In a statement today, VCIX was blunt about the financial struggles. "The company has not been able to meet its current outstanding financial obligations and outstanding payables, including salaries payable to its employees and to employees of its Israeli subsidiaries." Paychecks to a total of 90 employees in New York, Los Angeles and Israel have not been delivered.

As news of the company's imminent demise made the rounds today, VCIX stock hit an all-time low of 9 cents per share, off more than 70 percent for the day and well off the 52-week high of $8.81.

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Back in July, VCIX announced plans to sell off five sites within its ethnic community network. Almost 50 employees connected to those sites were laid off at the company's three locations in New York, Los Angeles and Jerusalem, Israel.

Additionally, VCIX said three non-executive directors had resigned from its board, leaving Moskovitz as the sole board member. The departing directors are David Morris, Peter Jacobs and Allan Dalfen.

VCIX, which operates a network of English-language content sites, said it recently closed a secured convertible notes purchase agreement with institutional lenders who lent the Company an aggregate of $1.7 million between August and October 2000. "However, the secured loan does not provide any new funds to the Company and only represents the conversion of a short term promissory note evidencing loans previously made to the Company by the lenders," the release stated.

"As a result, the company is attempting to raise funds from other sources to continue its operations," it added. Of the five sites up for sale -- VirtualJerusalem.com, VirtualIreland.com, VirtualHolyland.com, VirtualItaly.com and VirtualIndia.com -- a sale agreement is close to being consummated for VirtualJerusalem.com, a site providing content to North American-based Jews.

Yet, even as the proposed sale of VirtualJerusalem.com picked up steam, the company was making no promises. "The company is currently in discussions with potential acquirers to sell one or more of its properties. The negotiations for such sale are in advanced stages and at least one transaction is expected to be completed by the end of the month; however there can be no assurance of a sale at this time."