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It has been a big week for New Tel but one that may ensure the telecom
company's survival although at a substantial price for some of its 240 staff,
many of them based in North Sydney.
New Tel, based in Western Australia, hopes to defy market speculation it will
plunge into receivership with the announcement yesterday of negotiations to
have a Hong Kong company acquire its outstanding debts with Telstra and Optus.
These are rumoured to top $20 million.
The debt talks follow New Tel's plans to outsource its mobile business to
Optus subsidiary RSL Com Mobile and its fixed-line telephony business to
privately held telecom company RSL Com.
New Tel chief executive officer Peter Malone has admitted the deal will mean
the majority of New Tel's operational staff many of them in North Sydney will
be made redundant.
New Tel said it would soon finalise negotiations with Hong Kong company
Broadband & Wireless (BWL) to acquire its outstanding debts with Telstra and
Optus. It would then be able to give its annual report to auditors.
The Australian Stock Exchange suspended New Tel's shares after it failed to
lodge audited financial statements last month.
The ASX said New Tel ``will be required to satisfy the ASX of its ongoing
financial position as a condition of its reinstatement".
Even if the deals are passed, New Tel still faces litigation from two mining
companies, AKD and Ashburton Minerals, which are suing New Tel subsidiary Cable
& Telecoms (formerly Cambridge Gulf Exploration NL) for $10 million. The case is
set to be heard in the first half of next year.
New Tel last traded at 4.8c.
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