May, 2002 : KPNQwest to Customers: Find A Backup Plan
📅 - Troubled European communications firm KPNQwest (kpnqwest.com) said today it is advising its customers to find back-up connectivity plans in case it has problems keeping its network online.
The company, which filed for bankruptcy protection last week, said it is "advising customers that they may wish to put in place contingency plans with other providers in the event of a significant deterioration in the performance of the KPNQwest EuroRings network," a release from the firm said. "KPNQwest is proactively working with its customers to assist with these plans."
KPNQwest also said it had been unable to reach an agreement with potential buyers on a transaction involving most of the company. "The negotiations will continue, but it is not likely that final agreement will be reached within less than three to five weeks," KPNQwest said.
The company added that it plans to sell off certain non-critical assets in order to ensure the continuity of its network for the near future.
Meanwhile, Reuters reported yesterday that the company is on the "brink of financial collapse" after a last-minute financing deal fell apart.
"A piece-by-piece firesale now appears imminent," the report said.
KPNQwest, a joint venture between US telecommunications firm Qwest and Dutch telecom KPN, filed for bankruptcy protection last Thursday. The company, which operates a fiber optic backbone connecting 60 cities throughout Europe, warned earlier this month that it was quickly running out of cash and that there may be no underlying value to its debt or equity securities.
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Frail Telecom Sector Leads to KPNQwest Collapse
The company, which filed for bankruptcy protection last week, said it is "advising customers that they may wish to put in place contingency plans with other providers in the event of a significant deterioration in the performance of the KPNQwest EuroRings network," a release from the firm said. "KPNQwest is proactively working with its customers to assist with these plans."
KPNQwest also said it had been unable to reach an agreement with potential buyers on a transaction involving most of the company. "The negotiations will continue, but it is not likely that final agreement will be reached within less than three to five weeks," KPNQwest said.
The company added that it plans to sell off certain non-critical assets in order to ensure the continuity of its network for the near future.
Meanwhile, Reuters reported yesterday that the company is on the "brink of financial collapse" after a last-minute financing deal fell apart.
"A piece-by-piece firesale now appears imminent," the report said.
KPNQwest, a joint venture between US telecommunications firm Qwest and Dutch telecom KPN, filed for bankruptcy protection last Thursday. The company, which operates a fiber optic backbone connecting 60 cities throughout Europe, warned earlier this month that it was quickly running out of cash and that there may be no underlying value to its debt or equity securities.
related news ..
Frail Telecom Sector Leads to KPNQwest Collapse
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