German cable operator PrimaCom is facing insolvency, after its creditors requested the immediate repayment of loans worth E29.2m.
Creditors demanded the repayment of loans after PrimaCom shareholders failed to meet a May 31 deadline to react to a…
German cable operator PrimaCom is facing insolvency, after its creditors requested the immediate repayment of loans worth E29.2m.
Creditors demanded the repayment of loans after PrimaCom shareholders failed to meet a May 31 deadline to react to a proposed debt reduction plan. The next deadline the German cableco faces is Thursday June 3 at 4pm, by which time it has to repay the funds and if an agreement is not found, the company’s board will be forced to register for insolvency.
The loan restructuring negotiations have been ongoing since April.
Meanwhile, Kabel Deutschland (KDG), the largest cableco on the German market, is said to have expressed an interest in buying assets from PrimaCom, as it has customers in the area where it operates. KDG and its two other largest rivals Unitymedia and Kabel Baden-Wuerttemberg are all currently eager to strengthen their customer base through the acquisition of level four network providers, which have direct billing relations with their customers, and PrimaCom is one of these.
The asset valuations remain unclear, as does whether any of the other two cablecos would consider a bid for the assets.
PrimaCom posted Q1 2010 EBITDA of E11.95m.