By Aled Herbert, 31 August 2001 09:15
NEWS Beleaguered telco Atlantic Telecom has spent more than half its cash reserves in its first quarter. A one-off payment of £14m for radio access equipment meant the company's cash balance fell from £108m to £55.5m in consecutive quarters. This excludes £26.6m Atlantic set aside in escrow to cover interest on debt, the FT reports. On 23 August, Atlantic bondholders expressed concerns over the company's cash burn claiming it will fail to meet future debt repayments. They also called on the board to seek a voluntary winding up of the business and claimed that without a substantial cash injection the company will fail to meet its debts repayments. Atlantic operates networks aimed at businesses markets in Germany, the Netherlands and the UK. For the quarter ending 30 June, the company reported ebitda losses of £12.5m compared to £13.2m in the previous quarter.
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