Banks are threatening to sue TLS if they don't cough up $US400mil into the Reach venture.
Telstra and its partner are not legally responsible to pay back any debt relating to Reach.
Banks are also threatening to withdraw business from TLS if they don't put in some cash.
Telstra should stand firm.The banks are full of bluster on this one.They would not risk losing future business from TLS and at the same time upset the Australian Government.
Not much more downside to go i would say.
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