The lenders of German cable operator PrimaCom have confirmed that they have taken over the company in a debt-for-equity swap. In exchange for writing down PrimaCom’s loans, the lenders – including US-based hedge fund Tennenbaum Capital Partners, Avenue Capital Group and London-based Alcentra Group – will acquire all of the shares in holding company Medfort Sarl, which bought PrimaCom from former parent PrimaCom AG in July 2010 after the company filed for insolvency. The lenders also agreed to provide €30 million through a second lien loan to allow the company to expand its business.
PrimaCom said on June 14th 2010 that the District Court of Charlottenburg had started insolvency proceedings for the non-operating PrimaCom Holding, after its shareholders failed to come to an agreement with creditors regarding repayment of a €29.2 million loan. The following month, the cableco said it had secured a €15 million credit line from a consortium of banks, allowing the operational business of the PrimaCom group to continue.