Tiscali fights for survival in the UK

The Italian-owned group Tiscali, which is the nation’s fifth-biggest internet provider, is currently in a desperate state of affairs having asked banks to suspend its loan repayments after a statement released late on Friday.

Following the announcement shares were suspended as the planned sale of its UK assets to BSkyB had fallen through.

The group had planned on selling its UK assets to BSkyB, although it is understood that their offer was only £350 million, which is well short of the £500 million Tiscali had asked for its 1.77 million UK which would have gone some way in securing the current debt repayments.

Tiscali, who employs 750 people in the UK, has asked for the banks to suspend repayments until finances were restructured. JPMorgan, which is the main debt holder, is considering the options that are available, although the most obvious and likely solution is seemingly filing for administration.

Although this is meant to be a preventative measure, delaying interest payments in the current climate is a dangerous tactic as the group has a net debt of €557 million (£508 million) and the next interest deadlines are Wednesday and Friday to the tune of €11 million.

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