PrimaCom agrees to pay €375 million settlement to lenders; Multikabel sale to proceed

By Caroline Salls

Pittsburgh, Sept. 15 - PrimaCom AG reached an agreement in principle with its secured loan lenders under which the company will pay €375 million in compensation for the lenders' payment demands, according to a company news release.

Under the agreement, the payment must be made by Nov. 30. If PrimaCom does not pay, it will owe the lenders €425 million.

Also under the agreement, the lenders have agreed to the sale of PrimaCom's Multikabel subsidiary. The company has a letter of intent for the Multikabel purchase, and there have been discussions with other potential creditors and investors, according to the release.

In January, the High Court in London indefinitely extended a temporary ban preventing PrimaCom AG from selling its Multikabel subsidiary without the approval of second secured lenders.

Second secured lenders include JPMorgan, the Blackstone Group, Apollo Management LP, Pequot Capital and Goldentree Asset Management, LP.

PrimaCom's board said in the release that it believes it will be able to pay the lenders within the Nov. 30 timeframe.

Mainz, Germany-based PrimaCom is a cable television operator in Germany and the Netherlands.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.