PrimaCom AG

euro adhoc: PrimaCom AG
PrimaCom entered into a Settlement Agreement with its Second Secured Lenders

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PrimaCom is pleased to announce that it has today entered into a Settlement Agreement with its Second Secured Lenders under a Facility Agreement dated 26 March 2002 ("SSFA").

This follows a judgment by the District Courts of Mainz (on the 13 September 2005) and an oral hearing in Frankfurt (on 16 September 2005) in which both courts clearly stated that they have no jurisdiction to hear the matters put before them which were subject to the exclusive jurisdiction of the English courts as provided for in the SSFA.

Under the Settlement Agreement PrimaCom has agreed to withdraw the litigation initiated by it against the Second Secured Lenders.  Once this and certain other conditions have been satisfied on or before 30 November 2005 the Settlement Agreement provides for:

- the sale of PrimaCom’s Dutch business, Multikabel; - the refinancing and repayment in full of the existing Senior Facilities; - a judgment in favour of the Second Secured Lenders to be obtained in the English courts in the amount of EUR 425 million; - the settlement of all amounts due and payable under the SSFA including the judgment of the English Courts referred to above by payment by PrimaCom of the amount of EUR 375million to the Second Secured Lenders; - the resolution of all litigation outstanding between PrimaCom and the Second Secured Lenders; and - the giving of mutual waivers and releases between PrimaCom and the Second Secured Lenders.

Mr Preuss for PrimaCom said: "The PrimaCom Management is convinced that with this Agreement it achieved the best possible settlement with Second Secured Lenders."

A spokesperson for the Second Secured Lenders said: "We are pleased that once the Settlement Agreement is fully implemented matters between the Second Secured Lenders and Primacom will be resolved. The favourable outcome of the court proceedings in Mainz and Frankfurt, PrimaCom’s agreement to withdraw the German litigation and the releases from future claims given by PrimaCom confirm the validity of our claims under the SSFA. We believe this outcome to be in the best interests of the Company’s stakeholders."

PrimaCom AG Management Board

@@start.t2@@end of announcement                                                 euro adhoc 13.10.2005 16:04:56

ots Originaltext: PrimaCom AG
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Branche: Telecommunications Equipment
ISIN:      DE0006259104
WKN:        625910
Index:    General Standard
Börsen:  Frankfurter Wertpapierbörse / regulated dealing
              Berliner Wertpapierbörse / free trade
              Hamburger Wertpapierbörse / free trade
              Baden-Württembergische Wertpapierbörse / free trade
              Börse Düsseldorf / free trade
              Niedersächsische Börse zu Hannover / free trade
              Bayerische Börse / free trade
              Bremer Wertpapierbörse (BWB) / free trade

Weitere Meldungen: PrimaCom AG

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