The restructuring of Bulgarian telecoms operator Vivacom is moving a step forward, TelecomFinance understands.
A source close to the transaction revealed that Oger Telecom and mezzanine creditors, which together hold E325m of Vivacom’s E1.6bn debt,…
The restructuring of Bulgarian telecoms operator Vivacom is moving a step forward, TelecomFinance understands.
A source close to the transaction revealed that Oger Telecom and mezzanine creditors, which together hold E325m of Vivacom’s E1.6bn debt, yesterday signed a lock-up agreement with senior creditors. They also plan to start negotiations with the government.
Last month, senior lenders favoured a plan submitted by Oger Telecom and the mezzanine creditors against a proposal by Pinebridge, the vehicle of Hong Kong-based businessman Richard Li, which currently owns Vivacom. Pinebridge had teamed up with Hong Kong-based telco PCCW, where Li is chairman, to jointly invest E180m in Vivacom in exchange for a 51% stake.
Li took control of Vivacom in March when he acquired AIG Investments, which was then renamed Pinebridge. AIG bought the telco in 2008 from Advent International.
Vivacom appointed Lazard to restructure its debt, while Deloitte was appointed to carry out an independent business review and Houlihan Lokey to advise junior lenders.
Deutsche Bank, RBS and UBS arranged the E1.635bn debt package that supported AIG Capital Partners’ acquisition of Vivacom in 2007. Vivacom still has 90% fixed-line market share but only has 15% mobile market share
