Monday, 15 June 2009

Primus bankruptcy reorganisation to go ahead – USA

Primus Telecommunication, which operates the Primus Wireless MVNO in the United States, has confirmed its plans for reorganisation.

Primus is currently under court protection after it filed for bankruptcy in March 2009, although this security offered by the bankruptcy procedure is expected to run out 1 July 2009. Primus has revealed that after court protection ceases its debts will be reduced by about 50 percent, down to USD 316,000,000, and interest rates they expect to be pay will be halved. The reorganisation will also see the cancellation of existing stock offerings.

The company’s operating company and other ventures outside of the United States will not be affected by the reorganisation.