While WorldCom has intimated that it is unwilling to sell UUNet, the local Internet service provider has received numerous offers and management says it would be irresponsible of the US parent not to consider serious offers.
As part of WorldCom`s international operations, UUNet has not been included in the US parent`s Chapter 11 bankruptcy filing.
Under a clause in the filing, WorldCom`s management team has 120 days to file a reorganisation plan to address its debt. This is not a liquidation process as conducted under local law, but a procedure to assist financially troubled companies to restructure their liabilities.
This has left UUNet free to continue business as usual and MD Dave Meintjies says: "UUNet SA will continue to be financially independent of WorldCom as we do not depend on WorldCom for day-to-day funding purposes, therefore we will not file for liquidation. Locally, UUNet SA is a registered legal entity in SA and is protected as a separate entity in terms of the Companies Act."
Meintjies says WorldCom is facing a gearing problem and the Chapter 11 filing will give it the protection it needs while re-organising its current debt.
"UUNet SA currently has adequate surplus cash resources at its disposal, which are expected to grow to R30 million in the next six months, and we do not have any third-party debt financing in our business."
He says the maintenance and upgrade of the network are not at risk and 75% of UUNet SA`s international links and bandwidth is sourced from suppliers other than WorldCom.
"Should WorldCom services experience any interruptions, UUNet SA has the necessary contingency plans in place."
Meintjies says UUNet has never been properly integrated into WorldCom as the acquisition only happened fairly recently, and shortly after the deal, WorldCom became embroiled in its current accounting woes.
WorldCom has stated it will not be looking to sell off its core assets, mentioning UUNet as part of the assets it hoped to hold onto.
However, Meintjies says while WorldCom is not a willing seller, it would be irresponsible of the company not to consider viable and serious offers to acquire UUNet on both a practical and fiduciary level.
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