Junior lenders have taken over German cableco PrimaCom in a debt for equity swap, according to reports. German restructuring specialist One Square Advisors acted on behalf of PrimaCom.
Lenders Tennenbaum Capital Partners, Avenue Capital Group and…
Junior lenders have taken over German cableco PrimaCom in a debt for equity swap, according to reports. German restructuring specialist One Square Advisors acted on behalf of PrimaCom.
Lenders Tennenbaum Capital Partners, Avenue Capital Group and Alcentra Group are among those who will now own 100% of holding company Medfort Sarl, which over the summer itself took over PrimaCom from PrimaCom AG.
Under the agreement, which will see E120m of mezzanine debt cleared, the lenders will pump E30m into the company via a second lien loan to be spent on business expansion, reports Bloomberg.
PrimaCom announced in June of this year that its holding company was the subject of insolvency proceedings at a local court in Charlottenburg, after its shareholders clashed with creditors over the repayment of a loan worth E29.2m. Following this, the company managed to sign a E15m credit line with banks.
In November 2007, PrimaCom took out a E400m facility, which included E120m of mezzanine debt, according to Bloomberg.
