MobilCom, the troubled German mobile operator, has said it expects the deadline for payment of a E4.7 billion loan to be extended. An extension would reduce the threat of insolvency and give MobilCom additional time to restructure its debt.
Major shareholder France Telecom said last month that it would no longer provide MobilCom with credit. However, the French group has signed a memorandum of understanding with MobilCom’s 17 lending banks and its equipment manufacturers and has assumed the bulk of MobilCom’s debts.
Meanwhile, MobilCom may seek damages from France Telecom for suspending its shareholder agreement. As part of its agreement, France Telecom was to provide up to E18 billion in liquidity over 10 years.