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To: Raymond Duray who wrote (17797)	4/4/2002 9:21:26 AM
From: elmatador	Read Replies (1) \| Respond to of 74559

Next: Energis to let pan-European carrier fail By Chris Nuttall at FT Investor Published: April 4 2002 12:57 \| Last Updated: April 4 2002 13:13 Energis, the alternative telecoms operator in restructuring talks with its banks, said on Thursday it could no longer provide funds for its Swiss-based pan-European carrier division, which was likely to file for insolvency. In an update on its strategic review, Energis said its wholesale carrier business in continental Europe required significant funding, which outweighed any probable sale benefits. To preserve cash, there would be no further funds for Energis Switzerland, it said, which was therefore expected to file for the opening of insolvency proceedings. Energis said it would continue to support its national businesses, Energis Ision in Germany and Energis NV in the Netherlands, while it was in discussions with potential purchasers. The company said its lending banks were continuing to provide funding and show support for its core UK business ahead of their review of its full financial restructuring proposals to secure the long-term future of the company. Energis shares, which were already up on the day, were little changed on the news at 5.2 per cent higher at 2.85p. Energis failed to make a payment on time for one of its senior bonds last month to try to save cash and warned in February it might breach banking covenants. It has been trying to sell off its overseas interests to preserve its UK business. Energis [EGS, News, Chart, Research] ascribed no value at all to its pan-European carrier business, Energis Switzerland. As part of its strategic review, it said it was cutting off funding and forcing the business into insolvency. The level of investment required outweighed any possible sale benefits, said the cash-strapped altnet. See story The business will therefore go the way of other casualties of this over-supplied sub-sector, such as GTS, Viatel and Carrier1 [CONEQ, News, Chart, Research].