Australia :Globalfreeway bites the dustgreenspun.com : LUSENET : Grassroots Information Coordination Center (GICC) : One Thread
Globalfreeway bites the dust
By Megan McAuliffe, ZDNet Australia 19 March 2001
Australian free Internet service provider Globalfreeway has been placed in the hands of receivers - ending weeks of speculation about its financial state.
Global Freeway’s collapse will effect over 210,000 subscribers across the country.
Accountants KPMG confirmed to ZDNet Australia today that they've been placed in control of the ISP. However, it would not reveal the level of Globalfreeway's debt.
“We can confirm KPMG is to do the receivership,” a KPMG spokesperson said.
“It’s still too early for us to make comment, we will eventually be contacting creditors,” the spokesperson said.
“There is no announcement to be made at this stage.”
Globalfreeway has remained tight-lipped about its future for weeks. The service has been intermittently down since September last year.
One source told ZDNet Australia last week that 15 staff had been told to leave the company and severance pay had not yet been issued.
ZDNet has also been told the ISP has lost over AU$60 million in just six months, and owed telecommunications provider Global One AU$50 million.
Global One confirmed it was owed an 'undisclosed sum' and had terminated network services to Global Freeway on 3 March, 2001.
The free ISP’s Web site has been replaced with a statement saying the address could not be located
-- Martin Thompson (email@example.com), March 28, 2001