All operating units are expected to continue to operate their businesses without interruption
Integrated communications services provider Primus Telecommunications, along with three affiliated companies, Primus Telecommunications Holding, Primus Telecommunications International, and Primus Telecommunications IHC, has filed for bankruptcy protection in the US.
The company recently reported a fourth-quarter net loss of $35m, compared to profit of $2m in the year-ago quarter, on revenue down 8% at $203m. It also reported a $35m negative impact from the strengthening of the US dollar against currencies in its major foreign operations.
None of the company’s operating units in the United States, Australia, Canada, India, Europe, and Brazil, are included in the filing, and all operating units are expected to continue to manage and to operate their businesses without interruption.
K Paul Singh, chairman and chief executive at Primus, said: This is a relatively straight-forward balance sheet restructuring at the holding company level. Our operating units are strong and have adequate cash resources to meet the needs of their businesses throughout this process. Confirmation of the plan of reorganization will put Primus in a stronger position to weather current global economic conditions and enable us to take advantage of opportunities that may arise.