Primetel: What has driven the company into receivership

When Primetel was trying to restructure its bank loans a few years ago, the investment fund Signal Capital Partners showed interest in refinancing the company with several millions and thus became its primary lender.

On 18 July, 2023, however, the Registrar of Companies was notified that the companies of the Primetel Group had entered into receivership.

According to the information amassed by InBusinessNews so far, the procedure for the appointment of a Receiver/Administrator was initiated by Signal after certain terms of the loan agreement were not met by the company, with the London-based fund deciding that this is the most appropriate action at this time.

According to information at hand, Marios Kallias has been appointed Receiver/Administrator, while consultants from abroad hired by Signal are also involved.

It is worth noting that after the appointment of Receiver/Administrator it appears that the entire Board of Directors of the company have submitted their resignation.

Possibly, the issuing of an official announcement by the Administrator in relation to the developments should be anticipated, while the reactions of the company's shareholders are also awaited with interest.

Primetel is one of the key players in the telecommunications sector in Cyprus and it remains to be seen what impact the appointment of an Administrator will have on the company's operational issues.

Primetel: A new era

"Primetel will consistently continue its strategic commitment to continuous development, steady investment in the network and exemplary expansion of the quality services it provides by offering its subscribers the best possible experience," the company has said in a statement, in light of its entry into receivership.

In the announcement, it is emphasised that Signal Capital, a private equity fund based in London, an important partner and main financier of Primetel during the last five years, actively undertakes to support Primetel.

As highlighted in the announcement, in recent years Signal has funded the development of Primetel's new state-of-the-art next-generation mobile network and will continue to support the company's operations and investment needs with faith in the capabilities of the company and its staff.

Read Primetel's full announcement below (translated from Greek) :

"Signal Capital, a private equity fund based in London, an important partner and main financier of Primetel during the last 5 years, has undertaken to actively support Primetel.

In recent years Signal has funded the development of Primetel's new state-of-the-art next-generation mobile network and will continue to support the company's operations and investment needs with faith in the capabilities of the company and its people.

Primetel will consistently continue its strategic commitment to continuous development, steady investment in the network and exemplary expansion of the quality services it provides, offering its subscribers the best possible experience".

(Source: InBusinessNews)