Orion Cable up for auction
German cable operator Orion Cable will go under the hammer due to the current owners’ inability to reach an agreement with the banks to which it is heavily indebted on a new direction and necessary capital-raising measures.
“The complete shares in Orion will therefore be auctioned,” German newspaper Süddeutsche Zeitung learnt from industry sources. The move was decided by banks to which the current shareholders signed over their stakes as collateral for credit, the report says. An auction is meant to prevent the company from filing for insolvency. An Orion spokesman did not wish to comment on the situation.
Orion Cable, which is owned by financial investors, has been struggling with its high debts for months.
According to the report, creditor banks are not interested in breaking up the company, to which Tele Columbus and PrimaCom belong. It is possible that one or the other of the creditor banks could come on board as shareholders, the article claimed. Other cable operators such as Kabel Deutschland could also be interested in Orion.