German cable operator Primacom has been taken over by its lenders in a debt restructuring plan.
The move has allowed the company, which filed for insolvency last June, to immediately cut its debt by about E155m, from E350m, and by E60m in the next three…
German cable operator Primacom has been taken over by its lenders in a debt restructuring plan.
The move has allowed the company, which filed for insolvency last June, to immediately cut its debt by about E155m, from E350m, and by E60m in the next three to four years.
Primacom’s owner, Luxembourg-based financial holding company Medfort, has been acquired by Perseus, a company controlled by mezzanine lenders Alcentra, Avenue Capital Group, ING, and Tennenbaum Capital Partners, for an undisclosed amount.
The restructuring allows the company to invest almost E100m by 2014 to develop its business. The company will also get an injection of E30m in fresh capital. Further funding will be made available for the company’s acquisitions and investments, a statement read.
One Square Advisors were exclusive financial advisers to Medfort.
Primacom’s CEO Michael Dorn commented in a statement: “Completion of the refinancing is a major milestone for Primacom, giving the company a stable and sustainable capital structure from which we can build our business over the long term. The funding provided by the new investors is long term and is being made available to complete the relaunch of the Primacom brand and generate attractive
investment returns over a 3-5 year period.”
Primacom became insolvent after missing repayment deadlines on a E29.3m loan in June 2010. Shortly after, the company announced a restructuring, which saw shares in Primacom Management transferred to Medfort.
In early November, rival operator Kabel Deutschland said it was looking to acquire approximately 70,000 TV cable networks from Primacom. TelecomFinance understood that the deal was valued at approximately E10.5m.
Primacom has about one million customers across Germany.
