PIPE Networks PPC-1 in financial trouble - what will happen to PPC-2?

, posted: 2-Dec-2008 09:24

Just read this in CommsDay:
"... Pipe Networks requested a share trading halt at the ASX after proposed financing arrangements for its PPC-1 cable between Australia and Guam fell through. Pipe's international unit said it had withdrawn from negotiations with financiers and that talks would now ensue with suppliers and customers to determine the future of the project. It also suggested that there were alternative arrangements in the offing but if they fell through the company would take a $30 million non-cash writeoff. A final resolution is expected in coming days, it said."
What does that mean for the proposed PPC-2 cable between NZ and Australia that has been budgeted for by the previous Labour government here, but which depends on PPC-1 for connectivity to the rest of the world? 
Obviously, the credit crunch contagion is spreading to network infrastructure projects in this region as well, which is a pity.

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