Lenders to German cable operator Tele Columbuss have been given until May 20 to approve the restructuring of the company in a move that that will see its debt cut to Â623m from Â947m, according to local reports.
The restructuring includes a 90% cut to the Â283m mezzanine debt, a 60% reduction to the Â75m of outstanding second-lien debt and a 10% cut to the Â589m of senior debt. The restructuring has the support of 90% of lenders but needs 100% approval by May 20 to take effect. If the restructuring is given the green light, mezzanine lenders will own 53% of the equity in the company, second-lien lenders will hold 14% and senior lenders will own 33%.
Late last year, lenders to Tele Columbus took legal action to force owner Escaline to auction its stake in Tele Columbus. Escaline is a subsidiary of investment company Escaline Sarl and owns holding company Orion Cable, owner of Tele Columbus. Rival operator Kabel BW is currently seeking regulatory approval to acquire Tele Columbus’ cable networks in Baden-Wuerttemberg.