Mar 18, 2005 : VIA NET.WORKS Looking for Financing
📅 - Web hosting provider VIA NET.WORKS (vianetworks.com) said on Friday that it is working with PricewaterhouseCoopers in an attempt to obtain new financing to address what the company says is an "urgent" liquidity problem.
The company, with operations in Europe and the US, says it would like to find financing by the end of the month. VIA says that unanticipated revenue shortfalls in its current operations and new VIA Express business would leave the company with insufficient cash reserves by early next month. As an alternative option, the company says it is also pursuing the sale of all of parts of its business.
"We are pursuing all opportunities to optimize the value that is inherent in the VIA businesses. Many of our companies, including the Amen Group and most of the recently acquired PSINet Europe companies, are achieving significant success and are generating free cash from their operations," says Ray Walsh, chief executive officer of VIA NET.WORKS. "Many of our other companies are self-sustaining or neutral on a cash-flow basis. With an appropriate infusion of new cash to pay for additional cost reductions, we believe we could still achieve our goal of achieving positive cash flows from consolidated operations during 2005."
VIA, which generates approximately $100 million in annual revenue, acquired PSINet Europe last August. It acquired France-based web host Amen in January of 2004.
The company, with operations in Europe and the US, says it would like to find financing by the end of the month. VIA says that unanticipated revenue shortfalls in its current operations and new VIA Express business would leave the company with insufficient cash reserves by early next month. As an alternative option, the company says it is also pursuing the sale of all of parts of its business.
"We are pursuing all opportunities to optimize the value that is inherent in the VIA businesses. Many of our companies, including the Amen Group and most of the recently acquired PSINet Europe companies, are achieving significant success and are generating free cash from their operations," says Ray Walsh, chief executive officer of VIA NET.WORKS. "Many of our other companies are self-sustaining or neutral on a cash-flow basis. With an appropriate infusion of new cash to pay for additional cost reductions, we believe we could still achieve our goal of achieving positive cash flows from consolidated operations during 2005."
VIA, which generates approximately $100 million in annual revenue, acquired PSINet Europe last August. It acquired France-based web host Amen in January of 2004.
Reads: 1477 | Category: General | Source: TheWHIR : Web Host Industry Reviews
URL source: http://www.thewhir.com/marketwatch/via031805.cfm
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