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Tiscali's Troubles Deepen

2:05 PM -- There's no end in sight to the saga of Tiscali SpA 's financial troubles. The latest development in the European triple-play provider's woes is that its auditors Ernst & Young International have refused to comment on the company's consolidated financial statements for 2008 because of the "fundamental uncertainties" on the business continuity, throwing the service provider's viability into doubt.

Tiscali's share price dropped more than 6 percent in late afternoon trading today.

In order to pull itself back from the brink, Tiscali needs to renegotiate its debt with its main lending banks. Those negotiations have already begun, and the service provider has obtained a standstill agreement with the banks until June 2009, which can be extended to the end of December this year.

Tiscali has been trying to find a buyer for its U.K. and Italian businesses for some time. Last month, negotiations with British Sky Broadcasting Group plc for the U.K. business fell apart. (See Tiscali to Restructure, Tiscali Sells Int'l Unit , Tiscali to Cut Staff, Tiscali Italy Loses CEO, Tiscali in Turmoil?, Tiscali Seeks Buyer, and Tiscali Takeover Looms.)

And to make matters worse, some of Tiscali's U.K. customers were left without email service for almost a week, including the bank holiday weekend. (See Carphone Guns for DSL Top Spot.)

— Michelle Donegan, European Editor, Light Reading

bollocks187 12/5/2012 | 4:07:07 PM
re: Tiscali's Troubles Deepen

Tiscali was always looking for the cheapest price to build its netwok. Both the UK and Italy divisions are less than committed to building a sustanaible service provider offering. They where looking for a way out to be acquired - old model build a network quickly and get cusotmers signed up then sell off the business.

This is why they are a piece of crap as an SP :-) Good riddance to them - the netwrok is a better place. BTW if you have ever done business with the Italian operators  - always a brown envelope somewhere - corrupt.




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