BERLIN — German cable group Primacom filed for involvency on Monday after negotiations between shareholders and creditors reached an impasse.
Primacom’s main shareholder, Luxembourg investment group Escaline, had sought to reach an agreement with creditors who had demanded payment of E29.2 million ($35.8 million) in loans.
Primacom, which has more than 1 million customers throughout Germany, said it was forced to file for insolvency after its creditors declined to withdraw their demands.
A sell-off of Primacom’s core assets, which remain in healthy shape, could benefit Germany’s other major cable players, including Kabel Deutschland, Liberty Global’s Unitymedia and Kabel Baden-Wuerttemberg, all of which are looking to bolster their customer base.
Kabel Deutschland said earlier this month that it was interested in some of Primacom’s assets. Primacom has around 750,000 customers in regions where Kabel Deutschland is also active.
Primacom’s core assets are valued at around $400 million, about as high as the group’s overall debt.