One.Tel says its founders Jodee Rich and Brad Keeling will step down from their board seats and executive roles, at the same time unveiling a AU$132 million rights issue.
Keeling would stay as an adviser to the board until June 30, 2001, the company said.
One.Tel has Rupert Murdoch's News Corp and Kerry Packer's Publishing and Broadcasting as major shareholders, and will underwrite the issue.
The carrier received enormous negative publicity and angered fund managers when it revealed in September that Rich and Keeling were paid AU$7.47 million each in bonus payments, despite the group posting a net loss of A$291 million for 1999/00.
The remuneration packages were revised.
Replacing Keeling and Rich on the board would be Peter Yates, chief executive of Kerry Packer's Publishing and Broadcasting, and Peter Macourt, deputy chief executive officer of News Corp's Australian unit, News Limited.
"The board resolved to undertake a capital raising on the advice of management that the company's cash position is now expected to be lower than forecast," the company added in a statement.
The one-for-one rights issue would have an application price of five cents per share.
