13 Jan 2004
Singapore Telecom (SingTel) has said that it will invest USD225 million into its struggling submarine cable subsidiary C2C to help keep it operational. The news represents something of a U-turn by SingTel, which only six months ago withdrew its financial support for the unit. Under the new proposals agreed recently with C2C’s creditors, SingTel will inject USD115 million of working capital into the subsidiary, as well as paying USD110 million to buy back USD200 million of C2C’s USD650 million debt at a discount. C2C operates a 17,000km submarine cable network spanning South East Asia, but since the telecoms downturn has experienced falling demand for bandwidth from carriers. Last year it missed revenue targets for a USD650 million five-year loan arranged in November 2001.