Telemedia crippled by slow payers

By RICHARD BRADDELL

Telemedia Networks International, an Australian-listed telecommunications equipment supplier controlled by Auckland businessman Chris Jones, could be sold as a result of financial difficulties brought on by slow payers.

The company, which had a market capitalisation of $550 million last August, is seeking to restructure its long-term debt and is in discussions with potential buyers for all or part of it.

Telemedia rode the telecommunications boom by supplying equipment that enabled third parties such as The Warehouse to operate virtual mobile networks using other telecommunications companies' infrastructure.

But in spite of a strong niche, it called a halt to trading in its shares 10 days ago.

Telemedia later explained that it was in discussions with its "secured lender" whose ongoing support was required.

From a high of $A7.41 ($9.08), the shares last traded at A73c.