Pipe Networks has saved its PPC-1 cable project after its international subsidiary signed a MoU with PPC-1 system supplier Tyco Telecom and a "key customer" that should pave the way for completion finance.

"Whilst most terms of the MOU are confidential at this stage, Pipe Networks can disclose that a key change relates to the rescheduling of a number of supplier payments to align with customer receipts, along with a number of customer receipts being brought forward to more closely align with the timing of supplier payments," said Pipe in an ASX announcement.

Pipe chairman Roger Clarke commented "It is a testament to the commercial potential and importance of the project that an alternative agreement could be reached that side-stepped the debt markets for primary project financing. I congratulate the team who have been working tirelessly over the past three weeks to bring about this outstanding outcome."

Pipe Networks CEO Bevan Slattery added "Everyone essentially got together and said 'how can we help to make this project happen'. Despite all the goodwill in the world, this would not have been possible without the support of our supplier Tyco Telecoms, as well as having already secured substantial capacity agreements from quality counterparties."

The new MoU follows Pipe's December 1 decision to walk out on discussions with the ANZ Bank and other financiers with the company complaining about "unacceptable delays in the credit approval process." Pipe says the MOU is comprehensive in outlining all major commercial terms adding that binding definitive agreements reflecting these terms will be completed in the next 4 weeks.

The company also reiterated its previously issued financial guidance of revenues of $A45M and NPAT of $A11M for the 2008/9 financial year. "Furthermore, it is expected that the terms of the new funding structure for PPC-1 will have no adverse effect on previously issued guidance for the 2009/10 financial year," it said. Pipe's ASX listed stock also resumed trading shortly after 11am this morning.