Feeds

C&W reveals lease liabilities

Investors plot coup

  • alert
  • submit to reddit

Intelligent flash storage arrays

ComputerWire: IT Industry Intelligence

Cable & Wireless Plc has been forced to clarify its outstanding lease commitments in the face of suspicions that big cut-backs in its international operations would leave it with huge liabilities on leases of property that it will vacate.

C&W insisted that the £700m ($1.1bn) lease commitments that follow the restructuring were included in the £800m($1.26bn) costs of the operation revealed at the time. It said that after the restructuring, it will have outstanding lease commitments of £1.4bn ($2.2bn) for its ongoing operations.

Concern over lease liabilities is part of a total collapse in confidence by the financial community in C&W, and in particular its chief executive Graham Wallace. Reports suggest that investors refuse to have any contact with Wallace and deal with the financial director instead.

They feel that having burned billions of dollars building the company's global unit into a major web hosting operation that has been a financial disaster, it should have been pruned back savagely to avoid further losses. C&W's decision to cut back the operation last week, with the loss of 3,500 jobs, is regarded as a feeble compromise.

The only consolation for disgruntled investors is that they can now take bets on how soon Wallace loses his job. Spread betting company Financial Spreads puts his remaining time with the company as 35 to 40 days, suggesting he is in for a miserable Christmas.

There is also speculation that leading investors have approached Peter Manning as his replacement. Manning is a former CEO of Colt Telecom Group Plc, prior to which he was president and CEO of Concert Communications Inc. Neither of these companies was a glittering financial success but this has become a business where few have made money for many years.

© ComputerWire

Choosing a cloud hosting partner with confidence

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
Google Glassholes are UNDATEABLE – HP exec
You need an emotional connection, says touchy-feely MD... We can do that
Lawyers mobilise angry mob against Apple over alleged 2011 Macbook Pro crapness
We suffered 'random bouts of graphical distortion' - fanbois
Just don't blame Bono! Apple iTunes music sales PLUMMET
Cupertino revenue hit by cheapo downloads, says report
US court SHUTS DOWN 'scammers posing as Microsoft, Facebook support staff'
Netizens allegedly duped into paying for bogus tech advice
Feds seek potential 'second Snowden' gov doc leaker – report
Hang on, Ed wasn't here when we compiled THIS document
Verizon bankrolls tech news site, bans tech's biggest stories
No agenda here. Just don't ever mention Net neutrality or spying, ok?
prev story

Whitepapers

Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
New hybrid storage solutions
Tackling data challenges through emerging hybrid storage solutions that enable optimum database performance whilst managing costs and increasingly large data stores.
Mitigating web security risk with SSL certificates
Web-based systems are essential tools for running business processes and delivering services to customers.