Dutch data communications and hosting company KPNQwest has filed for bankruptcy protection. The company, a joint venture between KPN and Qwest Communications, filed for bankruptcy after its banks revealed they would no longer maintain its credit facility. KPN has also withdrawn its financial backing, and KPNQwest’s entire supervisory board has resigned in the wake of the announcement.
The board was made up of two independent directors, as well as representatives from both KPN and Qwest.
The company, which operates a pan European fiber optic network, has appointed E.T. Meijer and J.C. van Apeldoorn as administrators. The administrators are hoping to preserve the business as an ongoing entity. KPNQwest has said it will continue to look for strategic investors and will work with its banks in order to find funding alternatives.
KPNQwest has debts of around E2.3 billion and employs 4,000 people.