PrimaCom Creditors Respond to Multikabel Sale Rumors

PrimaCom Creditors Respond to Multikabel Sale Rumors

FRANKFURT, Germany, Nov. 25 /PRNewswire/ -- Apollo Management, L.P. issued the following statement in regards to PrimaCom AG's interest payment to creditors this week, and recent reports of efforts taken by the Company to sell N.V. Multikabel, its subsidiary in the Netherlands.

"We have been troubled by recent reports suggesting that PrimaCom is considering a sale of its trophy asset, Multikabel, in order to raise capital. This won't solve the problem. The company's capital structure still needs to be fixed.

"The Second Secured Lenders have informed PrimaCom's management in writing they do not currently favor material disposals, including the sale of Multikabel, outside of a comprehensive restructuring of PrimaCom.

"The Second Secured Lenders have also advised the Company that a divestiture of Multikabel is prohibited under terms of the credit agreement without obtaining their prior written approval.

"If the Company were to conduct such a sale without approval, it would constitute a breach of their agreement.

"The lenders reserve the right to take action against any person who knowingly participates in a sale of Multikabel without their approval.

"By payment of interest earlier this week, PrimaCom again recognized their obligation to pay what they rightfully owe. However, the current capital structure is unsustainable. The company's finances need to be restructured. We do not know why Mr. Preuss continues to drag this on, and won't seek to negotiate a long-term solution. The longer this continues the more value in the company will be destroyed."

The Second Secured Lenders include Blackstone, Apollo, Pequot, GoldenTree and JPMorgan.


Source: Apollo Management, L.P.

CONTACT: In Frankfurt - Frank Schoenrock, +49-69-756199-27,
Frank.Schoenrock@edelman.com, or In New York - Doug Donsky, +1-212-704-4473,
Doug.Donsky@edelman.com, both of Edelman, for Apollo Management, L.P.


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