Indebted Greek fixed-line operator Forthnet is working on an offering of convertible notes because at present it will not be able to meet its bond repayments next year. In its Q3 results it said it would not be able to fully fund €180m in repayments…
Indebted Greek fixed-line operator Forthnet is working on an offering of convertible notes because at present it will not be able to meet its bond repayments next year.
In its Q3 results it said it would not be able to fully fund €180m in repayments due up to the end of September 2015.
Forthnet has mandated an independent financial adviser to formulate a refinancing proposal to present to the lending banks and to arrange to refinance the outstanding notes.
In a statement Forthnet said: “Based on the results of the [independent business review] report, the financial due diligence report and the ongoing discussions with the banks, the management of the group is confident of a successful outcome of the refinancing negotiations with the lending banks.”
The news comes as the Greek operator is weighing up an offer from OTE for its pay-TV business, Nova, and a joint offer from Vodafone Greece and Wind Hellas for all of its operations.
Forthnet has repeated its previous statement that it will decide which of the non-binding proposals to go with at the end of the month.
Meanwhile, OTE and Vodafone and Wind are conducting due diligence.
Last week, Vodafone closed the acquisition of broadband operator Hellas Online, a move local analysts have told TelecomFinance could prove to be a catalyst for further consolidation in the Greece. The country’s faltering economy desperately needs consolidation, the analysts said.
