As today's Financial Times reports, more and more companies are being frozen out of the commercial paper market, the main source of day-to-day corporate funding. Not surprisingly, a number of the companies being frozen out are from the telecommuncations sector. They include Qwest, Sprint and a number of others to be named sooner rather than later.
Last year, I wrote a column about the woes of telecom that dealt, in part, with the sector's staggering debt loads. Those debt loads are getting a much harder look in the wake of the Enron/Global Crossing debacles. When a company like Qwest (which is not just a fiber-optic network but an RBOC as well) gets tossed out onto the street by the commercial paper market, then the game really has changed.
Saturday, February 16, 2002
Posted by John at 2/16/2002 10:59:00 PM