LONDON -- British telecommunications group Energis teetered on the edge of bankruptcy on Friday after its debt rating, already junk bond status, was slashed again and its shares resumed their freefall AFP reported.

Energis, once a high-flying stalwart of the so-called 'New Economy,' has endured a dramatic fall from grace that has seen its share price plunge by over 99 percent. Energis shares tumbled over 40 percent in early trading here on Friday to just 2.25 pence.

The latest crisis to hit the British telecoms industry unfolded after Energis, the biggest Internet carrier in Britain, said it did not expect to be able to meet its borrowing commitments and entered crunch talks with its banks.

The group also axed 400 more jobs and put its businesses in Continental Europe up for sale.

Standard and Poor's Credit Agency said on Friday it had cut its long-term debt rating for Energis to CCC- from BB-. The move followed a credit downgrade by Moody's Investors Service late on Thursday.

Energis said it expects to hear back from its banks on proposed changes to its loan conditions within two or three weeks.