20 November 2002 -- Privately held UK telecoms carrier Interoute - which is majority-owned by the Sandoz Family Foundation - has been forced into administration.
Interoute says it failed to reach an agreement with telecoms equipment maker Alcatel SA regarding a renegotiation of its vendor financing arrangement. To recover outstanding loans Alcatel has exercised its right to appoint a receiver - Deloitte & Touche - to take over administration on behalf of creditors.
A spokesman at Alcatel, which is a leading creditor and supplier to Interoute, said Interoute's owners had forced its directors into administration. "Alcatel provided Interoute with the majority of its vendor financing so we have excercised our right to appoint a receiver to work on a long-term solution for the network and to recuperate what is owed to us".
Alcatel had already taken provisions in its Q3/2002 financial figures - announced in September - to cover the risk that Interoute may default on its loans.