KPNQwest network still hangs on

The trustees of bankrupt fibre-optic network provider KPNQwest expects the network to remain online throughout June

The trustees of bankrupt fibre-optic network provider KPNQwest expects the network to remain online throughout June

How long the network continues operating depends on how much pressure KPNQwest suppliers put on the company to pay what it owes them.

KPNQwest only has funds to meet its existing obligations, but not debts that are past due, the trustees said in a statement. A shutdown could still happen before the end of June if the money raised by the bankrupt company's trustees runs out.

Late last week, the trustees asked KPNQwest customers, which include Lycos Europe, Foot Locker and Dell Computer, to pay outstanding bills and an advance for June, so that the company would have enough funds to keep its network online. Although the target amount was not reached, the trustees believe there is enough money to keep the network up until 1 July.

This gives users more time to look for an alternative carrier. Competing carriers have set up special teams to target KPNQwest customers.

KPNQwest went bankrupt at the end of last month after a plan to sell some assets to meet its most urgent financial obligations failed. It is now expected that KPNQwest will be sold off in pieces. Several companies have shown interest.

A consortium of investors is rumoured to be interested in the central European operations, while according to published reports, AT&T last week had a team at KPNQwest's headquarters seeking information on the company to determine whether to make an offer. AT&T declined to comment on the reports.

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