Video exploring options


video exploring options

Working with its advisors, KPNQwest continues to explore various options, including raising funds from its significant shareholders and third parties, finding a strategic buyer or selling certain non-strategic assets to third parties.

This remains the Company's primary objective.

video exploring options

However, KPNQwest has not yet reached an agreement with any person for this purpose and there can be no assurance that any agreement will be reached. Following its announcement on 24 April that it was exploring alternative means of recapitalizing its balance sheet, KPNQwest has experienced a continued deterioration in its liquidity position, in part due to the uncertainty of the alternative telecommunications market and the Company's financial position and video exploring options.

video exploring options

In light of its deteriorating financial position and prospects, KPNQwest has been evaluating its own resources and funds potentially available from other persons to determine whether they would be sufficient to meet all of its obligations, including its ability to meet its obligations under its outstanding high yield notes, or to complete a recapitalization transaction. KPNQwest has also entered into discussions with the lenders under its existing credit facility about the preliminary results of KPNQwest's review of recapitalization alternatives and the Company's current financial condition and prospects.

video exploring options

Under the present circumstances, without sufficient additional financial support from shareholders, strategic buyers or third party investors, KPNQwest is unable to draw further funds from the existing credit facility in order to meet its funding requirements for all of KPNQwest believes that, in light of its deteriorating financial position and prospects, the value of its debt and equity securities have been severely impaired and could face significant future impairment.

KPNQwest believes that there is substantial risk that there may be no underlying value to either its debt or equity securities.