By Mardi Balgochian Scalise, Lightwave Web Editor
Following recent difficulties, 360Networks is burdoned with the unfortunate task of cutting jobs and disappointing shareholders.
As part of its efforts to reduce operating expenses and conserve capital, 360networks announced it is reducing its global workforce by approximately 800 positions. The workforce reduction includes a range of positions in North America, Europe, South America and Asia. The company will continue to employ about 1,000 people globally.
This news came not long after the company announced it halted the decision to acquire NetRail, a wholesale Internet service provider, in an all-stock transaction. The company previously announced plans to acquire NetRail earlier this year.
These difficulties followed an announcement in mid-June in which 360networks announced it would not make a $10.9 million interest payment due on its 12.5 percent Senior Notes. Under the terms of the debt, 360networks had another 30 days to make the payment in order to avoid default consequences under the Notes. The company was not going to make the payment to preserve cash as it reviewed its options. In May, 360networks announced it was in discussions with current shareholders and others to resolve its funding issue. As these discussions had not been successfully concluded at the time, the company refocused its efforts on other alternatives, including restructuring.
About 360networks:
360networks (NASDAQ: TSIX and TSE: TSX) offers optical network services to telecommunications and data-centric organizations. The company's fiber optic network connects more than 50 major cities in North America, Europe and South America with terrestrial segments and undersea cables. For more information, visit www.360.net.