Tiscali's Troubles Deepen
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