German cable operator PrimaCom has announced it will file for insolvency protection, after its shareholders failed to come to an agreement with creditors regarding repayment of a EUR29.2 million (USD35.7 million) loan. Following rejection of a repayment proposal by creditors, PrimaCom’s shareholders have said they are no longer willing to negotiate and therefore the board will prepare a bankruptcy petition. CommsUpdate reported earlier this month that the cableco, which is owned by investment company Escaline-Orion, was facing insolvency after its creditors asked for EUR29.2 million to be repaid. On 31 May 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 firm’s creditors and major shareholders have been negotiating the restructuring of the debt and credit position of PrimaCom since April. The company has stressed that the day-to-day running of the cable business is not affected.
Also earlier this month, German cable network operator Kabel Deutschland (KDG) said it is interested in buying assets from PrimaCom. The acquisition would allow KDG to expand its direct end-user cable access (also known as level 4) relationship with its customer base and upgrade subscribers to new services such as broadband internet and fixed line telephony to boost revenue.