Pipe Networks back on track for cable project

Supplier payements successfully resheduled

Pipe Networks’ planned cable between Australia, the US and Asia, called PPC-1, will go ahead after the company rescheduled payments with suppliers.

Pipe, which is also a partner of New Zealand state-owned enterprise Kordia in a bid to lay a new trans-Tasman cable. today told the Australian Securities Exchange (ASX) it signed a memorandum of understanding with supplier Tyco Telecom.

While most terms of the MOU are confidential, Pipe Networks disclosed that a key change relates to the rescheduling of a number of supplier payments to align with customer receipts.

Pipe Networks CEO Bevan Slattery says this is a great outcome in the current credit climate.

“It’s been a tough few weeks, but there was an overwhelming commitment by everyone involved to ensure this project is a success,” he said in a statement to the ASX.

Binding agreements will be completed in the next four weeks, Pipe Networks says.

Pipe has been reinstated to official quotation on the ASX as a result of the agreement. It is expected that the terms of the new funding structure for PPC-1 will have no adverse effect on previously issued financial guidance.

Join the newsletter!


Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags Networking & Telecomms ID

Show Comments