Primus U.s. Holding Company Announces Plan Of Reorganization

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17th March 2009, 09:35am - Views: 599





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Primus U.S. Holding Company Announces Plan of Reorganization 

Restructuring Expected to Benefit Primus Australia

Greater Level of Investment in Australian Operations is Foreseen

Melbourne, Australia -- March 17, 2009 --Primus Telecom Australia said today that its U.S.

holding company, Primus Telecommunications Group, Incorporated together with three

affiliated holding companies, (“the Holding Companies”), has reached an agreement with

various noteholders on the terms of a consensual financial restructuring of their debt.   The

agreement, which is expected to be consummated through an expedited Chapter 11 filing in the

United States, will result in the reduction of more than 50 percent in principal debt obligations

and more than 50 percent decrease in interest payments for the U.S. holding company.

“This is good news for Primus Australia because it results in increasing Primus Australia’s ability

to re-invest in our local operations,” said Ravi Bhatia, CEO of Primus Australia.  “Since it was

granted a license to operate in 1997, Primus has invested over $500 million in its network

facilities in Australia.”

“Primus Australia is a solidly profitable business that generates significant positive cash flow,

making us financially independent and self sufficient,” Mr. Bhatia said. “No employees,

customers, suppliers or business partners in Australia will be affected in any way by the financial

restructuring activities of the U.S. holding company and there will be no loss jobs in Australia.

“We expect only to benefit from the restructuring since a large portion of local profits that were

used in part to service the U.S. holding company’s debt may now be available for investment in

organic expansion as well as acquisitions of synergistic telecom businesses throughout Australia. 

It is a ‘win-win’ situation for the U.S. holding company and its bondholders, as well as Primus

Australia and its customers, vendors and business partners in Australia.”    

Primus Australia’s network offers nationwide coverage through its own sophisticated backbone

network with facilities in 66 POIs and 282 DSLAMs across Australia, as well as nationwide long-

distance telephone and high speed broadband services.  In addition, Primus operates its own

fibre network in the five major capital cities, delivering a complete range services to residential

and business customers including direct-connect services, ISDN, telephone, broadband, Ethernet

and hosting services. 

# # #

For more information, please contact:

Pru Quinlan or Louise Roberts at Einsteinz Communication T: (02) 8905 0995 

M: 0405 100 585 (Pru)  

E: pru@einsteinz.com.au or louise@einsteinz.com.au 


or


Ravi Bhatia, CEO Primus Australia. T: (03) 9923-3000 

E: CEO@primustel.com.au






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