Business News

Troubled T-2 Reports EUR 100m Net Loss for 2010

Maribor, 15 February (STA) - Insolvent telco provider T-2, which has been undergoing debt restructuring since January, reported a EUR 101m net loss for 2010 on Tuesday. The second largest broadband internet provider in the country generated EUR 44m in net sales revenue.

The preliminary results, which will be updated in March, show T-2 recording a EUR 5m net loss in the final quarter of 2010, while generating EUR 11.6m in net revenue. The revenue was 8% above the average for the first nine months.

The management ascribes the rise in revenue in recent months to a 3.1% increase in the number of subscribers and higher prices of services as of March 2010 - the latter also increased in January this year.

The long-term financial commitments of T-2 - which employs around 200 people - stood at EUR 94.3m at the end of 2010, while short-term liabilities are at EUR 153.8m, the company said in a press release.

The Maribor District Court launched debt restructuring at T-2 on 13 January, giving creditors until this Monday to register their claims as part of the proceedings.

The state-owned NLB bank is T-2's biggest creditor with around EUR 125m in secured debt, followed by technology firm Gratel Gratel, with around EUR 80m in claims stemming from its construction of T-2 fibre optic infrastructure.

T-2 also owes around EUR 10m in wholesale network fees to national telco Telekom, which prompted Telekom to file a receivership motion against T-2 in the first place, to which T-2 responded with debt restructuring.

Motions for debt restructuring take precedence over receivership motions. T-2 maintained current operations were positive, which is why it saw no reason to start receivership.

As part of debt restructuring, T-2 wants to reduce its debt by EUR 100m. It has offered creditors repayment of 34.6% of their claims over a period of eight years.

T-2, in majority ownership of troubled financial holding Zvon Ena, was founded in 2004 and offers IP and mobile telephony, TV and broadband internet services. Media reports said Zvon Ena was looking for an international partner to sell its stake.

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