Tiscali reaches debt agreement

29 May 2009

Italian broadband operator Tiscali’s board of directors has approved a framework agreement that outlines plans for debt restructuring. The agreement covers EUR630 million (USD874.2 million) of maturing debt and outlines the use of funds arising from the sale of Tiscali’s UK operations to finance repayments. The board also agreed to a three stage increase in capital of up to EUR262 million. ‘The framework agreement designs a sustainable financial structure for the Tiscali group and the development of its activities in Italy. The path thus identified, when completed, together with the process of rationalisation and optimisation of activities and improving market conditions, will strengthen the positioning of Tiscali in Italy, laying the foundations for its new equity story’ said Mario Rosso, chairman and CEO of Tiscali. The deal relies on the successful sale of Tiscali’s UK operations to the Carphone Warehouse Group.

Italy, Tiscali, Tiscali UK