On Friday Tiscali suspended its shares and asked the banks to halt its interest repayments, which stand at €11m (£9.86m) this week alone, while it attempts to renegotiate its financial position and set a new business plan.
BSkyB was revealed to be interested in a £450m deal with Tiscali in November last year after Carphone Warehouse walked away from an earlier bid, but now the Italian internet company's future is uncertain as no buyers are left in the running.
Tiscali, which has 1.84m UK subscribers, was expected to go for £1.3bn when news originally surfaced last year but that price has fallen gradually as it continued to lose market share and the economic downturn took hold.
Today it has long-term debts of €500m (£449m), €400m (£359m) of which is a loan and the rest credit facilities. The company said today that talks with BSkyB are now "almost impossible" to continue.
United Kingdom
Tiscali sale to Sky stalls amid economic downturn
LONDON - Sky's plans to buy the UK assets of broadband provider Tiscali have broken down due to deteriorating market conditions before the companies could come to an agreement.
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