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[SLUG] ONE.TEL dies...


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.     
        
A Parker        
COMPANY SECRETARY       
        
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   
its:    
        
* 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   
shareholders.   
        
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.      
        
A Parker        
COMPANY SECRETARY       
-- 
"kevin@xxxxxxxxxxx kevin"@oceania.net
"Democracy is two wolves and a lamb voting on what to have for lunch. 
Liberty is a well-armed lamb contesting the vote."