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Breathe Networks administrator to hold creditors' meeting

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Exclusive Administrators will hold a creditors’ meeting for defunct ISP outfit Breathe Networks Ltd (BNL) on 3 September, The Register has learned.

A document filed with Companies House on 18 August reveal that the firm’s administrator - Neil Chesterton at The MacDonald Partnership (TMP) - has proposed that BNL be shifted into voluntary liquidation only if money can be paid to unsecured creditors.

“If, however, it is not possible to make a distribution to unsecured creditors then I propose to move straight to dissolution as soon as the activities of administration are concluded,” wrote Chesterton in his report.

Meanwhile customers, who saw their emails shunted over to Breathe Internet Ltd in a management buyout undertaken by BNL boss Steve Kaye in July, have been loudly complaining that the service still isn’t working for them.

Anyone attempting to contact Breathe Internet Ltd's helpline is currently greeted with a recorded message.

It simply confirms that the firm is still trying to recover emails for customers to ensure "no content is lost from before 19 July".

We've heard from several users of the service who are struggling to gain access to their Breathe inbox.

"Breathe.com email is not working and has not been working properly for nigh on 24 days. I personally have not received any emails since 10 August and all attempts to speak to Breathe or get them to respond have failed miserably," one Reg reader told us.

"If Kaye believes the 'email issue is being blown out of proportion' he is delusional and he is doomed to see Breathe fail - yet again," he added.

In 2008 BNL acquired UK-based business-to-business ISP Zetnet Ltd, which brought with it "financial difficulty" and "mounting debt", according to Chesterton.

"The due diligence conducted on this business was negligible and as a result the creditor position was severely understated at acquisition," he noted.

As we first reported last month, administrators were, on 16 July, called into BNL's offices. The beleaguered ISP has yo-yoed back and forth under several changes of ownership since the dotcom peak.

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