Reach close to new agreement with banks

As the market digests news of PCCW and Telstra''s write down of their holdings in Reach, bankers reveal they are close to agreeing new terms on its outstanding debt.

Bankers close to the negotiations between the shareholders of Reach and its financing syndicate have revealed that new terms on the troubled company's debt could be agreed within days. It is all ready for signatures and we could sign in a week or so, says one banker.

On Friday, PCCW and Telstra revealed they had written down the value of their joint stakes in Reach, the undersea cable join venture the two set up in 2000. PCCW wrote off Reach's goodwill of HK$8.26 billion $1.06 billion leaving its book value of HK$3.96 billion on its books. Telstra wrote the whole lot off.

Speaking on Friday, PCCW management revealed that...

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