International law firm Freshfields Bruckhaus Deringer has advised the cross-over creditors (holding a mixture of senior and junior loans) of German cable network operator primacom on the group´s complete financial restructuring, and the acquisition by them of all of primacom’s issued share capital. 

Freshfields had previously advised the same creditors in an initial phase of primacom’s restructuring in the summer of 2010, which looked to stabilise its financial position with the insertion of new money. The second phase, which has now been completed, includes the cross-over creditors´ taking control of primacom following a group reorganisation to slim down its corporate structure and, as agreed last year, providing further liquidity to the company. As part of the agreement, the cross-over creditors will equitise a substantial portion of the group’s liabilities while the terms of the remaining primacom senior and junior debt liabilities have also been substantially improved. 

Commenting on the deal, David Trott, head of the firm’s London banking team commented: ‘We are delighted to have been able to assist the cross-over lenders by deploying a multidiscipline team from our extensive network resources, this time in London and Hamburg, to effect the complex financial restructuring of the primacom Group. What makes this transaction unique is that the lenders have implemented a debt for equity swap in a non-consensual situation by way of share pledge enforcement and a two-step acquisition from the insolvency administrator’. 

‘It has been an extremely long and, at times, very complicated process but we are delighted to have assisted in putting primacom on a sounder financial footing for the future,’ he continued. 

The Freshfields team advising on the deal comprised, in London, partners David Trott and Richard Tett (finance) with Tim Wilmot (corporate) and, in Hamburg, Peter Versteegen (corporate/restructuring) and Lars Westpfahl (finance/restructuring). They were supported by London associates Alex Robb, Paul Ingram, Olga Galazoula and Michael Roberts (all finance) and corporate associates Kimberley Christiansen and Frederic Elens.

In Germany, associates Sebastian Siepmann, Marvin Knapp (both finance/restructuring) Oleg Buruiana and Olaf Ehlers (corporate) assisted. Tax advice was provided by partner Ulrich Blaas and Georg Roderburg and Alexander Schwahn (both principal associates) and associate Jan Schapp. Competition advice was provided by partner Tobias Klose and senior associate Till Steinvorth.