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Our Blogs The BeerFiles Primus US parent files for Chapter 11 with debts of AUD$1 billion
Our Blogs The BeerFiles Primus US parent files for Chapter 11 with debts of AUD$1 billion | Primus US parent files for Chapter 11 with debts of AUD$1 billion |
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| by Stan Beer | |
| Tuesday, 17 March 2009 | |
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At one stage the debt to creditors was US$1.4 billion, which the company paid down by half to US$650 million and this latest Chapter 11 filing would reduce the debt to US$315 million, said Mr Bhatia. The interest on the debts will be cut from US$65 million to US$30 million a year, he added. Mr Bhatia said the Australian company made a gross profit of $130 million last year and was "holding up well this year". "We're highly profitable and we were supporting the interest rate obligations of the holding company," said Mr Bhatia. "The interest obligations of the holding company have reduced by 50 percent so that means we have to send them less and more cash is available for local investment." Mr Bhatia said Primus Australia at one stage was sending one third of the US$65 million a year debt interest to its US parent to support the debt. Now it will be cut to one third of AUD$30 million a year in interest payments support, to about AUD$10 million. "It was a hell of a lot," said Mr Bhatia. "The business in Australia generated a gross profit of $130 million Aussie and we're the only telco who is not sending jobs overseas, we don't outsource and we won't be letting go of people here. This year is so far so good - we're holding up pretty well." CONTINUED Page 2 |
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