The German cable operator Primacom will file for insolvency protection from its creditors, the company has announced in a brief press statement. The major shareholders failed to delay repayment of a €29.2 million loan to the creditors.
In the statement, the chairman said that they no longer are willing to negotiate. Primacom is controlled by the investment company Escaline-Orion and has debts of €340 million.
In an earlier statement, the company reassured its customers that the financial woes of the operator has no effect in the day-to-day running of the network and that people would continue to be assured of television, telephony and broadband access services.
PrimaCom now seems ready for a take-over bid by one of its colleagues, such as Kabel Deutschland KDG, Unitymedia or Kabel Baden-Wuerttemberg. Of these, only KDG has publicly expressed an active interest in obtaining the troubled cabler’s assets, which include many so-called Level 4 subscribers.
Primacom is active in the states of Saxony, Saxony-Anhalt, Thüringen, Berlin, Brandenburg and Mecklenburg-Vorpommern, with just over 1 million connected homes.