Mobilcom Avoids Bankruptcy with Deal | Business| Economy and finance news from a German perspective | DW | 22.11.2002
  1. Inhalt
  2. Navigation
  3. Weitere Inhalte
  4. Metanavigation
  5. Suche
  6. Choose from 30 Languages


Mobilcom Avoids Bankruptcy with Deal

One of Germany's most troubled telecoms companies, Mobilcom, has been spared bankruptcy - at least for now. The debt-laden junior partner of France Telecom looks to avoid insolvency after Telecom finally agreed to overtake Mobilcom's more than 7 billion euro debt. The agreement ended an often bitter two-year-old partnership which heated up in the last half year over the expansion of costly next-generation UMTS mobile phone networks. France Telecom will now help shut down Mobilcom's UMTS business. Mobilcom will now undergo a restructuring with the help of a 112 million euro loan guaranteed by the German government. Shares in the German telecoms company climbed slightly Friday to 6.46 euro per share.