Added the following to /etc/ppp/ip-down
echo "IP Down $1 $2 $3 $4 $5 $6" >> /tmp/foo.log

Sorry about the delays, been a couple hectic days at work.

The following log lines are produced when the disconnect occurs

I enabled debug in /etc/ppp/options and all seems to be ok with the underlying PPPoE connection but I still loose the connection. I think the default route is being dropped some how?

Thanks for trying to reproduce the issue,

Thanks for the reply,