Back in October we were bombarded with Aussie bloggers complaining about our prediction of the imminent demise of Newsat.
Well, following revelations of some very strange spending habits in the Aussie press, to cap off some bad results and generally off-beam project management, it is now widely reported that Newsat’s supplier have terminated contracts, the Lenders have defaulted the company and new financial advisers have been instructed to try to salvage whatever they can from the company.
A variety of hedge funds are considering buying the debt at a discount because the equity is likely to be wiped out, no great surprise after a lengthy period of trading suspension. A half-built satellite, no spectrum assets and a loss making teleport business is unlikely to result in a big ticket sale. Various brokers like Lazard and Numis who on various occasions showed Newsat around the City of London must be glad they pulled away from the Company before the final denouement.