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.