Tiscali Broadband ISP in Dire Straits

Tuesday, March 10th 2009

Questions have already been raised from across the UK regarding the financial viability ofTiscali's UK Network Map Tiscali Broadband ISP as its shares were suspended after a fall of over 47 percent. A general sense of insecurity was triggered off when the Italian ISP had revealed on Friday that its talks with BSkyB on its UK assets' deal had failed. To add to the wounds, it also asked the banks to suspend the interest payments on its long term debts, which as well was taken as substantiation to its perilous state.


 


In the current situation, the most likely result seems to be the liquidation of the UK assets of Tiscali, for enabling the banks to recover their money. The Tiscali shares were suspended for a second time on Monday after falling to a record low of 16 Euro that pointed to almost 44 percent fall. Moreover, on concerns over its strategical uncertainty and its debt, the UK ISP has, in the last one year lost its value by 90 percent. In the wake of the debacles, Tiscali had said on Monday that it would no more comment on its financial position until concluding talks with its banks.


 


Tiscali had been trying to dispose its Italian as well as UK broadband operations for almost twelve months. Nevertheless, the shocking fall of Sterling against the Euro, along with the company's low-end state proved catastrophic to any intention of the firm to sell its assets off reasonably. However, any steps towards the liquidation of the ISP's assets does not bode well for its 700 odd employees in the UK alone.


 


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