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Enron Mail |
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Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: quoted-printable X-From: Dorland, Chris </O=ENRON/OU=NA/CN=RECIPIENTS/CN=CDORLAN< X-To: Cowan, Mike </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Mcowan1< X-cc: X-bcc: X-Folder: \ExMerge - Dorland, Chris\Sent Items X-Origin: DORLAND-C X-FileName: chris dorland 6-26-02.PST -----Original Message----- From: =09Dorland, Dan =20 Sent:=09Wednesday, June 13, 2001 7:12 AM To:=09Wilson, Jan; Gaffney, Chris; Borg, Jeff; Ellis, Dave; Dorland, Chris Subject:=09360networks debt-induced downward spiral deepens: closes at 68 c= ents on TSE 360networks debt-induced downward spiral deepens: closes at 68 cents on = TSE Canadian Press TORONTO (CP) - Vancouver-based 360networks continued it= s downward spiral on the stock market Tuesday, as investors knocked another= one-third off the telecom network company's valuation. Shares of 360networ= ks closed at 68 cents on the Toronto Stock Exchange, down 32 cents from Mon= day and less than one-fiftieth of their 52-week high of $35.90. On the Nas= daq, the shares fell to 45 cents US, increasing the possibility the company= could be delisted because of the electronic market's requirement of a $1 m= inimum share price. Investors fear 360networks will be unable to meet paym= ents on huge debts accumulated to build a high-speed fibre-optic network th= at was originally planned to span the globe. Moody's Investors Service low= ered 360network's debt rating last week because of the company's difficulty= in securing $300 million needed for debt payments within the next four mon= ths. A relatively small payment of $11 million US is reported to be due Fri= day. "The ambition to build a global network was a huge undertaking, an exp= ensive undertaking," Lawrence Surtees, telecommunications analyst for IDC C= anada, said Tuesday. "This is the same company that had been planning to sp= end $6 billion (Cdn) to expand its network this year." 360networks said May= 15 it would slash capital spending in 2001 to between $2.2 billion and $2.= 4 billion US, down from the previously planned $3.5 billion to $4 billion. = The company also halved its revenue forecast to between $1.2 billion and $1= .4 billion US. As of March 31, 360networks had $274 million US in cash. = =09
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