Troubled UK ISP Origin Broadband Move Customers to TalkTalk UPDATE

UK ISP Origin Broadband, which since August has been attempting to appoint an administrator to help tackle over £20m in losses (here), has today informed ISPreview.co.uk that all of their customer lines are being migrated on to TalkTalk’s platform (previously they used a mix of platforms), who are indirectly also Origin’s new owner.

Arguably, the current problems could be traced back to 2018 when Origin was rescued by creditors after hitting problems with “substantial bad debts” (here). A Company Voluntary Arrangement (CVA) was reached to help resolve this, which allows a company with debt problems or that is insolvent to reach a voluntary deal with its business creditors (i.e. paying them back over a fixed period). But clearly that alone wasn’t enough to fix everything.

Since August, Origin has twice filed a Notice of Intention (NoI) to appoint an administrator. Greg Connell, MD of InfolinkGazette, said earlier this month: “Clearly the directors were unable to clear all the hurdles and get the Administrator appointment over the line, which normally indicates a problem with creditors, shareholders or charge holders. The company is controlled by Faro Capital Ltd, who not surprisingly hold a fixed and floating charge.”

The latest development is that the ownership of Origin Broadband has now swapped to a company called OB Telecom Limited, which is trading as Origin Broadband and was only incorporated in July 2021 (previously Origin was associated to Origin Broadband Ltd and Origin Broadband Services).

The listed address for OBT is Soapworks, Ordsall Lane, Salford, United Kingdom, M5 3TT, which is the exact same address as that of TalkTalk. Sources also informed ISPreview.co.uk that Origin’s residential broadband lines were being migrated to TalkTalk, and we’ve now been able to confirm the plan.

A Spokesperson for Origin Broadband told ISPreview:

“TalkTalk Group has acquired 100% of the share capital of the newly formed OB Telecom, which will continue to operate as a standalone business. Origin customers will see their services continue as normal and we’re looking forward to welcoming the OB Telecom team to TalkTalk.”

By the looks of it, the debt itself will stay with Origin’s old company, which we suspect may soon go into administration.

UPDATE 4th October 2021

Origin has now officially appointed an administrator for the old company – ORIGIN BROADBAND LTD (07486862). The Administrators are Gareth Harris (IP No. 14412) and James Miller (IP No. 21290), both of RSM Restructuring Advisory LLP, based out of Central Square, 5th Floor, 29 Wellington Street, Leeds, LS1 4DL.