PrimaCom continues with rural investment despite financial troubles

24 Jun 2010

German cable operator PrimaCom has announced it will invest EUR4 million (USD4.9 million) in expanding it network to rural areas in the federal state of Saxony. The company plans to bring triple-play services to around 9,000 households in the towns of Grossenhain, Groditz and Pulsen and a further 2,000 homes in Laubusch and Lauta. PrimaCom already provides 350,000 households in Saxony with its triple-play service, which bundles HDTV, broadband internet and fixed telephony. The investment comes a week after PrimaCom announced it had secured a EUR15 million credit line from a consortium of banks, allowing the operational business of the PrimaCom group to continue. Earlier this month the cableco filed for insolvency after its shareholders failed to come to an agreement with creditors regarding repayment of a EUR29.2 million loan.

Germany, PrimaCom