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Creditors snap up Tele Columbus
Jörn Krieger ©RapidTVNews | 03-01-2010
Troubled German cable operator Tele Columbus has been rescued from having to file for insolvency: A group of creditors has purchased the company for €2.5m from parent holding company Orion Cable and affirmed its commitment to providing further financial support if necessary, reports German newspaper Die Welt, citing banking and corporate circles.
The original plan was for Orion Cable to be auctioned, but the move was scrapped at short notice. The highly indebted cable operator, which is backed by financial investors, wasn’t able to meet its financial obligations to creditors. Through the acquisition, in which the purchasers agree to take over the debt of €950m, the creditors have prevented Orion Cable from having to file for insolvency - a scenario in which they would likely have had to write off large parts of their claims.
Staff at Tele Columbus expressed relief at the change in ownership, ending the deadlock it has been stuck in for months. “Finally, we will be able to act again,” a manager told the newspaper.
Industry sources expect the creditor consortium to sell Tele Columbus after successful debt restructuring. Parties interested in purchasing the company are thought to include other cable operators such as Kabel Deutschland and Unitymedia as well as telecommunications companies such as Vodafone, Telefónica and Versatel.
© Rapid TV News 2010
