Auditor Refuses To Sign Off Tiscali Accounts
Continuing on its downward spiral, Tiscali has once again received a new blow to its business. Its auditor has refused to sign off its accounts as the current state of the business meant that the auditor couldn’t give an opinion on the 2008 full-year results.
The only hope that Tiscali has of staying afloat is if it manages to renegotiate its debts with its lenders.
The company was in negotiation talks with BSkyB, but they broke down in March after the company refused to sell for less than £600 million. Now Tiscali would be fortunate to get even half that amount if it is forced to sell in order to relieve its debts.
The company has contested the auditor’s decision and will propose a plan to limit the company’s losses during a meeting at the end of April. It is also claimed that its lenders have agreed in writing to extend a standstill agreement until late 2009.
Whilst giving a statement, a Tiscali spokesperson said, “The company, in disagreement with the conclusion drawn by the audit report, believes that it has co-operated at best and that it has provided all the information necessary to enable the independent auditors to issue an audit opinion on its 2008 financial statements.”
Tiscali’s UK customer base will no doubt be waiting eagerly to see exactly what happens at the meeting later this month. The company is certainly in trouble, but it seems to be doing its best to explore all possible future options.