Ailing PrimaCom secures EUR15 million credit line

The management of German cable operator PrimaCom has announced the company has secured a EUR15 million (USD19.9 million) credit line from a consortium of banks, allowing the operational business of the PrimaCom group to continue. In addition, the cableco revealed it is exempt from further financial obligations of around EUR15 million over the next few months. On 14 June 2010 PrimaCom, which is owned by investment company Escaline-Orion, said in a statement that the District Court of Charlottenburg had started insolvency proceedings for the non-operating PrimaCom Holding, after its shareholders failed to come to an agreement with creditors regarding repayment of a EUR29.2 million loan. The company has stressed that the day-to-day running of the cable business is not affected.