In a statement to the Milan stock exchange, auditor Ernst & Young cast doubts over Tiscali’s ability to continue as a going concern by saying that it could not draw a conclusive judgement on the telco’s accounts for the year ending 31 December 2008. Tiscali refuted the statement, claiming to have supplied sufficient data for the auditor to have reached an opinion. However, Tiscali agreed with Ernst & Young that business continuity relies on the ISP reaching an agreement with its creditors to restructure its debts, which totalled EUR601 million (USD793 million) at the end of 2008.
As reported by CommsUpdate on 30 March, Tiscali reported net losses of EUR242.7 million at the end of December 2008. The Italian ISP, which also operates in the UK, has a standstill agreement in place with its banks until June 2009, and is currently negotiating to extend this agreement until December.