VTB Capital has engaged an advisory firm to sell Vivacom after the Bulgarian operator’s indirect owner defaulted on a loan backed by the investment bank earlier this year.
VTB Capital has engaged an advisory firm, understood to be EY, to sell Vivacom after the Bulgarian operator’s indirect owner InterV Investment defaulted on a loan backed by the investment bank earlier this year.
VTB Capital was facility agent and security agent on the €150m bridge facility secured against 100% of the share capital of Luxembourg-based InterV, which failed to repay the loan on maturity in May.
Since the default, VTB Capital and the lenders say they have issued standstill notices as they explored solutions to recover the debt, and have now resolved to pursue a creditor-led competitive enforcement sales process for Vivacom.
Nick Hutt, CEO of VTB Capital – the London-based investment banking arm of Russian bank VTB – said his firm would “act appropriately and in accordance with our professional responsibilities and legal obligations throughout this process”.
VTB declined to confirm which advisory firm it was working with, EY declined to comment, Vivacom did not respond to a request for comment, and InterV could not be reached.
Former state-owned monopoly Vivacom offers triple-play services. It is one of Bulgaria’s three nationwide MNOs, competing against Telekom Austria’s Mtel and Telenor’s local unit.