'Suspension of payment' status lifted as Lambdanet Spain restructures
10 July 2003 Hanover, Germany Lightwave Europe--LambdaNet Communications today announced that its Suspension of Payments status in Spain has been lifted. The move follows the successful restructuring of its Spanish network and business operations.
10 July 2003 Hanover, Germany--LambdaNet Communications today announced that its "Suspension of Payment" status in Spain has been lifted. The move follows the successful restructuring of its Spanish network and business operations.
Jaime Martorell, Managing Director, LambdaNet Spain, said, "We are pleased to announce that after just five months we have been able to remove the Suspension of Payments status put in place while the Spanish network and business operation were restructured.
"During this period our primary objective was to ensure that it was 'business as usual' for our existing customer base, both in terms of network management and customer service. The result is a leaner, more competitive structure that will allow LambdaNet to increase its market share in both the Spanish and Portuguese markets."
LambdaNet applied for protection in February 2003, following a major drop in demand for backbone and Internet services in Spain. The most significant impact was the decision by its largest Spanish customer, Iberbanda to restructure its own network ï¿½ leased in totality from LambdaNet Spain.
Now that Iberbanda no longer requires this breadth of access, LambdaNet has made the decision to revert back to the original core network footprint, continuing to provide connectivity between the major cities and business districts of Spain and Portugal with connections to LambdaNet's international IP and optical network.
Working with LNG Holdings S.A. and RENFE, the two principle creditors of LambdaNet Spain, Jaime Martorell has restructured the Spanish business operation to ensure that it remains a viable business and reliable network and services provider.
"Much of the core network beyond the original 16 cities was built specifically to meet the customer needs of Iberbanda. The restructuring of LambdaNet Spain makes perfect commercial sense. There is no point in owning and managing a network that costs more to maintain than can be recouped in revenues," explained Bernie Smedley, CEO of LNG Holdings S.A.
"There have been few companies in the telecoms sector that have been able to revert from a status of payment protection. We are confident that we made the right decision by filing for protection and in doing so are certain that we will continue to provide a high quality network service to carriers and service providers in Spain.
For more information visit www.lambdanet.net