Creditors take control of Tele Columbus

The creditors of German cable network operator Tele Columbus have taken over the ailing firm after its parent company Orion Cable sold the operation for EUR2.5 million (USD3.1 million), Broadband TV News reports citing Welt Online. The creditors, which include York Capital, Alcentra, Golden Tree and the Bank of Ireland, are now reportedly prepared to provide additional funding to Tele Columbus. Talks on restructuring the debt will begin this month with a sale of the operator understood to be the most likely option. The move cancels a previously organised auction of the cableco; as reported by CommsUpdate, Tele Columbus’ creditors began formulating a plan to auction Orion Cable in December 2009 in a bid to recoup part of their investment. Previous efforts to sell the company have failed due to lack of interest from potential buyers, while the company’s owners, led by London-based financial investor Scott Lanphere, rejected the idea of letting creditors swap debt for equity.