The German cable operator PrimaCom faces insolvency as its creditors have asked for €29.2 million to be repaid. It says a deadline of 4pm on Thursday, June 3 has been set, though the day-to-day running of the cable business is not affected.
If the creditors do not receive the funds or come to an agreement, the board will be required to register for insolvency of Primacom AG. The creditors and major shareholders of PrimaCom have been negotiating about restructuring the debt and credit position of the operator since April this year.
The new deadline was set after the PrimaCom shareholders failed to meet a May 31 deadline to react to a proposal, after which the creditors demanded immediate repayment of outstanding bills to the tune of €29.2 million.
If the parties can’t agree a restructuring plan, the creditors can sell parts of PrimaCom’s operating business or run it themselves, according to local press reports.
At least one operator has expressed interest. Kabel Deutschland KDG told the press it might be interested in picking up the operator, “if the price is right”. Unitymedia, which earlier bought parts of PrimaCom in Aachen and Wiesbaden, declined to comment.
On Tuesday, PrimaCom also announced that CFO and board spokesman, Michael Buhl, has left the company June 1st. Buhl has been working for PrimaCom since 2008.