KPNQwest's liquidity worsens

15 May 2002 -- In debt by Euro2.3bn after its shares lost 95% of their value over the last year, Netherlands-based network operator KPNQwest NV says that its liquidity situation has deteriorated further and that it is exploring alternative means of recapitalising.

May 19th, 2002

15 May 2002 -- In debt by Euro2.3bn after its shares lost 95% of their value over the last year, Netherlands-based network operator KPNQwest NV says that its liquidity situation has deteriorated further and that it is exploring alternative means of recapitalising.
At the end of April Qwest Communications International Inc -- which owns 40% of KPNQwest -- said it was writing down its investment from about USD1.3bn to USD706m and that, after completing a USD41m purchase of KPN's network capacity, it felt no further obligation to fund it.
KPNQwest is considering raising funds from its main shareholders and third parties, finding a strategic buyer or selling certain non-strategic assets to third parties.
The company also said that it is unable to draw further funds from the existing credit facility and doesn't expect to meet its funding requirements for 2002. Some observers say it could file for bankruptcy.
KPNQwest's network has an 18-country 25,000km European footprint, interoperable with the 300,000km Qwest global network. It owns and operates the EuroRings backbone in Europe, which connects 60 cities, 14 of them with extensive metro area networks, and a network of 28 ultra-secure hosting facilities, the KPNQwest CyberCentres.
www.kpnqwest.com

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