Cisco made scapegoat for Comindico collapse

23 Sep 2004

Australian IP network operator Comindico has been forced into administration following Cisco System’s refusal to offer a financing deal to follow up the USD175 million it provided the company at launch, according to Australian IT. Cisco agreed a vendor financing deal with Comindico when it rolled out services in late 2000, but the equipment manufacturer says that it has no obligation to provide the operator with additional funding as it is not an investor in the company. ‘Cisco is not a major equity holder in Comindicio,’ said a Cisco spokesperson, ‘we have a vendor-client relationship with them’. The funding was needed for Comindico to continue operating; accountancy firm Ferrier Hodgson has now been appointed as its administrator.

Australia