Monday, 16 March 2009

Primus Telecom files for Chapter 11 bankruptcy protection - USA

Primus Telecommunications Group, operator of several MVNOs, has filed for bankruptcy protection in the District of Delaware, USA.

It was revealed through court documents that the company owes between USD 500 million and USD 1 billion dollars and has assets totalling between USD 100 million and USD 500 million.

Primus produced over 80% of its sales (which totalled USD 231 million) from outside the United States. Moody’s dealt a blow to Primus in December last year after it lowered its credit rating in expectation that Primus would default on a long term USD 23 million debt.

The company’s 1,817 employees, who are spread over the USA, UK, Canada and Australia, will not be affected by these latest proceedings.