Forum Archive Index - June 2001

["Peter Maiden" <pmaiden@today.com.au>]

TMN been a source of speculation on this forum


Telecommunications software engineering company Telemedia Networks 
International Limited (TMN) has asked Westpac to appoint a Receiver, 
after failing to meet debenture payments. The appointment is expected 
to take place later today.

TMN shares have been in a trading halt since May 18 while it 
conducted a review, after saying a combination of bad debts and 
delayed contracts would have a detrimental impact on its immediate 
cash flow position and on its full year results. TMN said at the time 
it was in talks with potential suitors looking to take a strategic 
stake, or swallow it entirely.

TMN said today it expects the Receivers will immediately restructure 
the group's business so that it can be marketed without delay in 
order to take advantage of existing purchaser interest.

"The Board has continued to explore a wide range of options for the 
future of the company, including refinancing, sale of the business on 
a going concern basis and other forms of restructure.

"Whilst good progress has been made on a possible sale of the company 
and the substantial majority in value of creditors have offered 
support, the cash position of the company has led the Board to 
conclude that it cannot continue trading.

"Accordingly, the Board has requested Westpac to exercise its rights 
under its Debenture and appoint Receivers," said chairman, Rod Olsen.

TMN shares last traded on May 18 down one cent to 73 cents.

Its shares spiked around $1.00 early last month after it announced a 
major board reshuffle ahead of its plans to list on the US stock 
market.

TMN reported a $3.69 million loss for the half year to December 31, 
2000.


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