Iaxis administrators confirm job cuts

It emerged yesterday that Iaxis, which has debts of up to $200m, was forced to call in the Big Five firm after investors refused to provide further funding.

PwC partner Steven Pearson said he would continue the search for a buyer while maintaining the business as a going concern and that he was confident that a buyer would be found.

‘Together with the support of the company’s staff, customers and suppliers we are looking to continue to trade and maintain the business,’ Pearson said yesterday.

But of Iaxis? 130 staff in London and across Europe, 90 have now been told they will no longer be required.

Following the completion of the first phase of its communications network, Iaxis fell victim to falling prices in the telecoms sector, although it had been planning a £1bn floatation.

But the company, which sells wholesale capacity on its 14,000 km fibre-optic network, could not raise funds for the second phase of its development.

Iaxis had been in talks about selling the business up until late last week, but after the discussions were unsuccessful the board chose to move the company into administration.

The company was spun out last year from Telemonde, another troubled telecoms company now chaired by Kevin Maxwell.

The Financial Times today reported that the company Iaxis owed $40m to its main equipment suppliers, Ciena and Nortel.

PwC called to help telecoms company