Tele Columbus is in talks with its creditors for additional payments totaling 200 million euros. The second-largest cable network operator, operating under the brand Pÿur, announced this on November 12, 2023. Additionally, the cable network operator aims to extend existing loans and bonds.
The discussions are said to be in an advanced stage. Tele Columbus requires an extension of the maturity dates of its financial obligations until 2028. According to the company, it has not paid a coupon due on November 2, 2023, amounting to 650 million euros, with a 30-day grace period in place.
Tele Columbus provides internet, telephony, and television services to approximately three million households. According to reports, the investment firm Kublai, primarily owned by the US corporation Morgan Stanley and United Internet, holds around 95 percent of the company’s shares.
Fiber optic expansion incurs significant costs
Tele Columbus intends to expand existing Fiber-To-The-Building access to reach individual apartments. “Where fiber optic cables currently reach only up to the basements, Tele Columbus is aiming for a full fiber optic connection right into the apartments (FTTH),” the company stated at the end of March 2021.
Otherwise, the fiber optic would at least end within the building (FTTB). According to information from the Bloomberg news agency, Tele Columbus and its owners have been working for months to find a way to refinance the debts. Allegedly, the company has been struggling with cash burn due to its investment in fiber optic expansion in Germany.
In October 2023, Tele Columbus announced firm commitments from shareholders for additional capital amounting to 100 million euros. Tele Columbus stated that the fiber optic strategy has already been implemented in numerous cities such as Berlin, Potsdam, Leipzig, Munich, and Hamburg. The coaxial networks are being upgraded to Docsis 3.1, “followed by a second phase where fiber optic cables will be expanded right into the apartments.”
