KPNQwest bankrupt, Nordic subsidiaries limp on

Nordic Business Report, June 4, 2002

NORDIC BUSINESS REPORT-4 June 2002-KPNQwest bankrupt, Nordic subsidiaries limp on (C)1994-2002 M2 COMMUNICATIONS LTD http://www.m2.com

Dutch broadband network service provider KPNQwest NV announced on Monday (3 June) that it had filed for bankruptcy.

Negotiations for selling a substantial part of the business were still ongoing but efforts to try and sell certain non-critical assets had not been successful, resulting in the bankruptcy notice.

KPNQwest Finland Oy issued an announcement where it told its customers that the company would continue providing services despite its parent's bankruptcy. The company had prepared backup solutions in case disturbances would occur in the continental European part of the network.

The Norwegian and Swedish subsidiaries, however, also filed for bankruptcy on Monday. KPNQwest Norway's outlook for providing services was uncertain and some of its main customers changed service provider already during the weekend.

In the past week the Swedish telecomms service provider Telia International Carrier has received orders worth approximately SEK10m, the business paper Dagens Industri reported. It pointed out that the order intake had not only increased as a result of KPNQwest's situation, but also due to other competitors recently suffering the same fate.

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