Bank provides lifeline for troubled Tiscali

Thu 12 Mar 2009 5 Comments

Troubled broadband provider, Tiscali, has been given a second chance to sort out its finances after its banks agreed to suspend all loan repayments in order to give it a fighting chance at restructuring its dire financial situation.

Earlier in the week it was announced crucial talks with potential buyers, BSkyB ( Sky Broadband) had fallen through, taking with it hopes for reviving the flagging UK arm of the Italian-based broadband company. At first it was hoped BSkyB would offer £600 million to acquire the business, but following ongoing problems the offer was thought to have dropped to nearer £350 million.

 

 

Now though, JPMorgan has agreed to put a hold on loan repayments worth €11 million (£10.1 million), hopefully giving the supplier the help it needs to get back on its feet. Other key lenders have also agreed to grant Tiscali more flexible loan terms.

Desperate to maintain subscription levels, Tiscali has already reassured its 1.7 million UK customer base that its broadband service will continue to operate as normal. That hasn’t stopped rival broadband companies from taking the steps to advertise to worried Tiscali customers, however. Be Broadband is the latest provider to push a Tiscali inspired promotion with the promise of £40 credit for all switching customers.
 

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Comments

  • neutral

    by R. Tawney at 11:16 on 12 Mar 2009Report abuse

    "Tiscali has already reassured its 1.7 million UK customer base that its broadband service will remain to operate as normal."

    Not me, for one, I have received no communication re the current problems and can find no mention at all of it on their website.

  • neutral

    by F.Puddy at 19:15 on 13 Mar 2009Report abuse

    I was told there would be a message on their website regarding their trading position but, like R Tawney, I have not seen anything or been sent an email.

  • neutral

    by R.Borley at 08:00 on 14 Mar 2009Report abuse

    That would also included me and several other people I know who are on Tiscali.All I have heard about it is from watching tv. But also I have not received any offers to move from other providers

  • neutral

    by Mike Hill at 16:16 on 27 Mar 2009Report abuse

    Had need for technical help from Pipex (part of Tiscali). Technician i spoke to would not comment on the company but said he was worried about job security.

  • neutral

    by ann at 19:49 on 11 Apr 2009Report abuse

    I did not know tiscali was in trouble financialy, & i have not received any mails from them either. just as well really because all my incoming is deleated on opening so i cant read them anyway. Is anyone else having this problem? PLEASE leave a comment if you are just so i know.

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