KPNQwest liquidators reportedly have approved a plan to keep the bankrupt telecom up and running for the rest of the month.
Last month, KPNQwest filed for protection form creditors. The decision followed the resignation of its five-member supervisory board. The European fiber-optic network owner had said that it may seek bankruptcy protection if an agreement with its senior bank group cannot be met.
Ever since the filing, the company has been scrambling to sell all or parts of its network. The plan approved yesterday gives the company's trustees more time, albeit not much more, to accomplish their goal. The networks are expected to stay up and running until July 1, according to circulating media reports.
Separately, Infonet signed a deal with KPN Telecom to provide alternative IP VPN services to KPN Telecom clients that use the IP VPN services of KPNQwest. Financial terms were not disclosed.
Last week, KPNQwest laid off nearly one-third of its workers in the Netherlands.