Tiscali Suspends Debt Repayments

Fri, 13 Mar 2009

Tiscali, the UK’s fifth-biggest internet provider, has announced it is suspending payments on its long-term bank debts .

The Italian-owned group released a statement earlier this week saying payments on debts were suspended while it restructures its finances following the collapse of the planned sale of its UK assets to broadcast giant BSkyB.

The statement said: "The company clarifies that pending the proposal for a standstill agreement from the main lending banks, the company has suspended payments on the long term bank debts including those due in March."

It added that the firm was already renegotiating its £453 million debt with key lenders, who it claimed were in support of the move.

Tiscali, who employs 750 people in the UK, put itself up for sale last year and began talks over the sale of "certain UK assets" to BSkyB in November.

However, Tiscali said last week that worsening market conditions had made it "impossible to proceed" with a deal.

Reports in December suggested that BSkyB had offered around £100 million less than the £450 million being sought by the Italian group.
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