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Survival hopes for FlowCom

Survial hopes for FlowCom
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Written by ZDNet Editors on
Troubled Internet Service Provider FlowCom, which entered receivership after defaulting on debts last month, may be saved from the torch.

Appointed receiver for the embattled ISP, PricewaterhouseCoopers, was today cautiously optimistic it could finding a buyer for the company that would maintain the operation.

Up to 22 parties, among them what receiver Phil Carter described as "leading players in the telecommunications industry", had expressed interest in buying the company at the close of the deadline for offers last week.

"Although it's still early days, we believe we have a good chance of maintaining the business as a going concern and transferring it and many of its employees to a high calibre buyer," said Carter.

PwC said it hopes to compile a short-list from the 22 applicants before selecting a successful bidder within two weeks.

FlowCom restructured a AU$15 million debt to Alcatel in April last year as part of a deal which saw it purchase the parent company of ISP iGreen, Green Communications.

Under the debt restructure arrangement FlowCom reduced its AU$15 million liability to Alcatel by AU$10 million, through a part equity conversion deal with a private investment group led by Crown-CapX and Crown Financial.

It's understood that FlowCom defaulted on debts to Crown Financial mid-January.

FlowCom has two wholly-owned subsidiaries: Flow Communications and MacroCom.

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