Blitz in financial trouble
2008-Jun-17, 9:00 pm
UPDATE Thursday 26 June | AINS / Supernerd claims to have purchased Blitz.
UPDATE Thursday 19 June | Blitz reports that some customers should now have their broadband connections back, albeit with some potential slowness. There are issues with some customers in Victoria though, said Omer.
UPDATE Tuesday 17 June | Blitz customers are still without service. Omer's latest update promises that "the administrator of Blitz Telecom Operations has accepted a proposal that will see the business continue to trade going forward, and that would see continuity of service to all customers." Omer said he expected the outage to end "in the early part of tomorrow" and said a credit would be provided for the downtime.
UPDATE Monday 16 June | Blitz customers lost their broadband connections earlier this evening. "The administrators have confirmed that the wholesale provider to Blitz Telecom has suspended these services", said Omer in a statement. "The administrator has confirmed that they will take all reasonable steps in negotiating the supply of service again from tomorrow lunch time." Despite the ominous news, Omer apologised to Blitz customers and promised compensation.
POSTED Saturday 14 June | Blitz Telecom, purchaser of G-Node and Koala Telecom, is in financial trouble and was placed in administration earlier this month.
Blitz director Umut Omer said that its primary investor had recently withdrawn support and that he is working to "propose a Deed of Company Arrangement that would see creditors paid and the company come out of receivership". Further information would be available next week, he said.
He also admitted that some staff had been retrenched during the week, but said he didn't expect "the termination of these staff to in anyway affect the quality of service provided".
Despite the trouble, Omer attempted to further reassure users, saying that the "Administrator has confirmed that services will not be interrupted during this period."
For many customers, it's another chapter in an ongoing saga. Many of Blitz customers were former Koala Telecom customers that were sold to Blitz when Koala ran into financial trouble last year.
Links:
- Koala in Voluntary Administration (Whirlpool, 16 Jul 2007)
- Updates from Umut Omer (Whirlpool Forums)