  The radio source 4C12.50 has often been suggested to be a prime candidate for
the link between ultraluminous infrared galaxies and young radio galaxies. A
VLBI study of the neutral hydrogen in the nuclear regions of this object shows
that most of the gas detected close to the systemic velocity is associated with
an off-nuclear cloud (~50 to 100 pc from the radio core) with a column density
of ~10^22 T_spin/100 K) cm^(-2) and an HI mass of a few times 10^5 to 10^6
M_sun. We consider a number of possibilities to explain the results. In
particular, we discus the possibility that this cloud indicates the presence of
a rich and clumpy interstellar medium in the centre, likely left over from the
merger that triggered the activity and that this medium influences the growth
of the radio source. The location of the cloud -- at the edge of the northern
radio jet/lobe -- suggests that the radio jet might be interacting with a gas
cloud. This interaction could be responsible for bending the young radio jet.
The velocity profile of the gas is relatively broad (~150$ km/s) and we
interpret this as kinematical evidence for interaction of the radio plasma with
the cloud. We also consider the model where the cloud is part of a broader
circumnuclear structure. Only a limited region of this structure would have
sufficient background radio brightness and large enough column depth in neutral
gas to obtain detectable HI absorption against the counterjet. The VLBI study
of the neutral hydrogen in 4C12.50 suggests that HI detected near the systemic
velocity (as it is often the case in radio galaxies) may not necessarily be
connected with a circumnuclear disk or torus (as is very often assumed) but
instead could be a tracer of the large-scale medium that surrounds the active
nucleus and that may influence the growth of the young radio source.
