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AMSTERDAM—Dutch carrier KPN Telecom’s chief executive Paul Smits stepped down early this week, most likely as a result of the company’s failure to cut its $20.7 billion loan.
The company reported losing about $906 million in its second quarter and said it plans to reduce its work force by 8,000 people by the end of the year. KPN’s stock price has fallen 97 percent since March 2000 and Moody’s reduced its stock rating to just above junk-bond level late last week.
According to Reuters, Ad Scheepbouwer, former postal industry executive, has been appointed as KPN’s new CEO, and shortly afterward, it won a $2.3 billion medium-term respite from its debt.
