Feeds

VIA NET.WORKS faces liquidity crisis

Financing, sell-off considered

  • alert
  • submit to reddit

Boost IT visibility and business value

VIA NET.WORKS, Inc. - the business-focused telco in Europe and the US - has called in PricewaterhouseCoopers to help it secure new financing to address an "urgent liquidity problem".

Netherlands-based VIA NET.WORKS has given itself until the end of March to either find new investment or flog all or part of the business.

In a statement the company said: "A combination of factors including unanticipated revenue shortfalls in certain of its legacy VIA companies and its new VIA Express business would leave the company with insufficient cash reserves to continue the operations of the group's parent company in early April 2005."

VIA chief exec Ray Walsh explained: "We are pursuing all opportunities to optimise the value that is inherent in the VIA businesses. With an appropriate infusion of new cash to pay for additional cost reductions, we believe we could still achieve our goal of achieving positive cash flows from consolidated operations during 2005."

"Unfortunately, while we have built a business with approximately $100m in annualised revenue, we have not yet reached the point where our cash-generating operations can sustain the ongoing costs of running the group, including the very significant costs inherent in maintaining a public company," he said. ®

Related stories

VIA NET.WORKS buys PSINet Europe
'Desperate' Qwest ups bid for MCI
Telecom future to look a lot like the past - study

Best practices for enterprise data

More from The Register

next story
Amazon says Hachette should lower ebook prices, pay authors more
Oh yeah ... and a 30% cut for Amazon to seal the deal
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Nintend-OH NO! Sorry, Mario – your profits are in another castle
Red-hatted mascot, red-colored logo, red-stained finance books
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
Feel free to BONK on the TUBE, says Transport for London
Plus: Almost NOBODY uses pay-by-bonk on buses - Visa
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
prev story

Whitepapers

7 Elements of Radically Simple OS Migration
Avoid the typical headaches of OS migration during your next project by learning about 7 elements of radically simple OS migration.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Solving today's distributed Big Data backup challenges
Enable IT efficiency and allow a firm to access and reuse corporate information for competitive advantage, ultimately changing business outcomes.
A new approach to endpoint data protection
What is the best way to ensure comprehensive visibility, management, and control of information on both company-owned and employee-owned devices?