Jun, 2002 : Interoute Launches Rescue Package for KPNQwest Clients

📅 June 4, 2002 - European telecommunications firm Interoute (interoute.com -> gtt.net) said today it had launched a "rescue package" aimed at assisting KPNQwest customers to switch service providers.

KPNQwest, a Pan-European telecommunications firm which filed for bankruptcy protection earlier this month, told its customers last week to find back-up connectivity plans in case it has problems keeping its network online.
Interoute's "rescue package", which the company said would be provided by a business continuity team, makes a number of guarantees, including meeting any costs involved in switching networks, meeting KPNQwest Service Level Agreement guarantees and matching any KPQwest pricing on services.
"We are receiving a lot of calls from distressed KPNQwest customers, many of whom are carriers like ourselves," said Ohad Finkelstein, Chairman and CEO of Interoute. "Some of these companies we already do business with, some we expect to do business with in the future. We feel it is important to give these organizations short term priority treatment to quickly resolve their supply problem at a time of crisis."
KPNQwest, a joint venture between US telecommunications firm Qwest and Dutch telecom KPN, operates a fiber optic backbone connecting 60 cities throughout Europe. The company 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.
Global communications firm AT&T has been reported to be a potential suitor for the company, although The Wall Street Journal reported today that the company pulled out of talks to purchase the entirety of the company last week. However, KPNQwest told the Journal earlier this week that AT&T was still in talks to purchase certain assets of the firm.