Qwest forced to restate accounts by £1bn
Troubled US telecoms giant Qwest may have to restate costs and revenues by as much as $1.5bn (£0.97bn), up from an original estimate of $1.16bn, in improperly-booked sales, new reports suggest.
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The latest figures emerged before a series of US House Energy and Commerce committee hearings into deals made by Qwest with Cable & Wireless, Flag Telecom and Global Crossing. The adjustments focus on a two-year period to 2001.
Qwest, which has debts of $26.5bn, could still avoid bankruptcy after reaching a $3.4bn credit facility agreement with creditors.
Regulators are continuing their inquiry into accusations of revenue-inflating levelled at Qwest and its competitors. They will investigate whether the companies traded excess capacity in each others’ networks to artificially boost sales.