PrimaCom on the brink, KDG circles
June 3, 2010
German cable operator PrimaCom has revealed it is facing insolvency after its creditors asked for E29.2 million to be repaid. The company's shareholders failed to meet a deadline to react to a proposal from the creditors, which resulted in the latter demanding immediate repayment of outstanding bills. The company has now been given until 4pm on June 3rd to repay the funds; if it fails to do so, or cannot come to an agreement with its creditors regarding the debt, the board of PrimaCom will be forced to register for insolvency.
Meanwhile, German cable network operator Kabel Deutschland (KDG) has said it is interested in buying assets from PrimaCom. A spokesperson for KDG said that the struggling operator has 700,000 to 800,000 customers in the area where KDG operates. The acquisition would allow KDG to increase its direct relationship with its customer base and upgrade subscribers to new services such as broadband Internet and fixed line telephony to boost revenue.