Tiscali banks to suspend repayments on debts

It has been revealed that popular broadband provider Tiscali is to have its debt repayments suspended by its banks to aid a restructuring of the group’s finances.

Like many other companies the popular broadband provider Tiscali has been experiencing problems of a financial nature in the current economic climate, according to recent reports. It has now been revealed that the broadband provider’s banks have agreed to suspend repayments on its debts, giving Tiscali time to restructure its finances.

Tiscali has been facing an uphill struggle since talks over selling up to BSkyB collapsed recently. Tiscali’s creditors are led by JP Morgan, and the broadband firm has confirmed that the creditors have agreed to suspend repayments on the loans for this week, and this includes a payment of over ten million pounds. Tiscali issued a statement that read: “The company clarifies that … [it] has suspended payments on the long-term bank debts, including those due in March.”

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Tiscali officials also said that they had been discussing debts with lenders with a view to renegotiating them, and that lenders had shown support with regards to this approach. The company has also stressed that the financial situation will not affect the service of its 1.7 million customers, and that customers should not worry.

The Tiscali group has debts of over five hundred and fifty million Euros, and it had hoped that it could clear some of this debt through selling up to BskyB and raising around six hundred million pounds. However, when sales talks collapsed recently the broadband provider found itself in a tricky financial situation and had to approach its banks for assistance.