SLUG Mailing List Archives
[SLUG] ONE.TEL dies...
- To: slug@xxxxxxxxxxx
- Subject: [SLUG] ONE.TEL dies...
- From: kevin@xxxxxxxxxxx
- Date: Wed May 30 11:49:02 2001
- Organization: Oceania
ONE.TEL LIMITED 2001-05-30 ASX-SIGNAL-G
HOMEX - Sydney
The Board of One.Tel Limited (One.Tel) has today announced the
appointment of administrators, and has notified the ASX of a
suspension of its shares.
Please refer to the enclosed media release for further information.
The Board of One.Tel Limited ("One.Tel") has today announced the
appointment of Administrators to assist the company and address its
immediate cash position.
Mr Steve Sherman and Mr Peter Walker of Ferrier Hodgson have been
appointed Administrators of One.Tel.
One.Tel's overseas subsidiaries are subject to different laws and
will be dealt with on a case by case basis.
One.Tel's auditors, Ernst & Young, informed the Board that due
diligence investigations had revealed a capital raising of $132M
would be insufficient to keep the company solvent. The renounceable
Rights Issue to raise $132M can therefore not proceed.
The Board heard that a capital raising sufficient to meet the funding
requirements was not available. As a result, the Board resolved to
appoint Administrators and notify the Australian Stock Exchange of a
suspension of trading prior to the market opening this morning.
The One.Tel board made this appointment after receiving advice from
management and its auditors on One.Tel's financial position including
* Immediate cash requirements; and
* Cash requirements for ongoing operations.
The Board believes the appointment of the Administrators is in the
best interests of One.Tel and all its customers, staff, creditors and
Mr Sherman said while a review of One.Tel's operations was underway
it would be business as usual for staff and customers
"We will review One.Tel's operations and hold discussions with its
major creditors to identify the best means of maintaining value for
the benefit of its stakeholders. In the interim One.Tel will continue
to trade as a going concern".
An information line will be established as soon as possible to update
customers, staff and shareholders of developments.
"Democracy is two wolves and a lamb voting on what to have for lunch.
Liberty is a well-armed lamb contesting the vote."