360networks: 'We're paid up.'
Vancouver-based 360networks' global fiber optic project will continue after the company confirmed it is in full compliance with all covenants under the company's $1.2 billion senior secured credit facility.
By the end of 2000, $350 million had been drawn, and the rest is earmarked for the fiber optic network.
360networks reports it had received investor inquiries and said it intends to meet interest payments from the debt.
"As a result of cash on hand, sales contracts, with customers and credit facilities available to us, we are comfortable that we can meet such obligations," said CFO Vanessa Wittman in a statement. She noted the difficult market, but said the company has always met its debt obligations and will continue to do so.
The company is building a fiber optic network slated for mid-2002 completion. The network will run 89,000 miles and link more than 100 major cities with terrestrial routes and undersea cable systems, the company reports. The network is expected to link North America, Europe, South America and Asia.
360 says more than 50 percent of the network is in service, including a transatlantic undersea cable; about 90 percent of a 26,700-mile North American network; about 40 percent of its European network; and more than 60 percent of another undersea and terrestrial network between the United States and certain South- and Central-American countries.
The company also is building metro networks in 35 cities.