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

Maximizing your infrastructure through virtualization

More from The Register

next story
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
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
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
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
prev story

Whitepapers

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.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Securing Web Applications Made Simple and Scalable
Learn how automated security testing can provide a simple and scalable way to protect your web applications.