Pipe Networks' cable in funds limbo till next week

Summary:Pipe Networks has requested again today that it be suspended from trading, with the financing of its Sydney to Guam cable likely to remain unresolved until next week.

in brief Pipe Networks has requested again today that it be suspended from trading, with the financing of its Sydney to Guam cable likely to remain unresolved until next week.

The company first suspended its shares from the market last week as problems emerged with the financing for its planned Sydney to Guam fibre-optic link. The original plan had been to fund the cable using finance from major banks, but that fell through due to "unacceptable" delays in the credit process.

Since then, the subsidiary responsible for the cable has made "significant progress" in establishing an alternative funding deal with its major suppliers and customers, according to the company; however, the negotiations were not set to finish soon.

"It is not expected that [the negotiations] will be concluded until late next week," the company said in a letter to the ASX today.

Pipe Networks would have to write-off $30 million if the cable, set to carry 1.92Tbps to Australian shores, did not go ahead.

Topics: Hardware

About

Suzanne Tindal cut her teeth at ZDNet.com.au as the site's telecommunications reporter, a role that saw her break some of the biggest stories associated with the National Broadband Network process. She then turned her attention to all matters in government and corporate ICT circles. Now she's taking on the whole gamut as news editor for t... Full Bio

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