German cable company PrimaCom has signed E15m worth of credit lines with banks, according to a management statement cited by Broadband TV News. Furthermore, the Level 4 operator is now exempt from paying back some E15m in loans for the coming months.
The…
German cable company PrimaCom has signed E15m worth of credit lines with banks, according to a management statement cited by Broadband TV News. Furthermore, the Level 4 operator is now exempt from paying back some E15m in loans for the coming months.
The credit and loans are registered with the holding company, Primacom AG, leaving the operating company, PrimaCom GMBH, running as normal.
Speaking to TelecomFinance, an official at the company said that securities belonging to the holding company have been put up as collateral to secure the funds. He added that creditors and shareholders were working on a restructuring plan that would see creditors receive equity at a loss to shareholders.
“So, the only risk is to the AG, which hasn’t got any assets”, the official said.
PrimaCom announced last week that the district court of Charlottenburg had initiated insolvency proceedings.
