Nordic CDMA450 Operator Files for Financial Protection

Nordic CDMA450 network operator, Nordisk Mobiltelefon (Ice) has filed for financial protection while it restructures its operations in Norway and Sweden. The move does affect its other networks in Poland or Denmark.

The company says that the purpose of the reconstruction processes is to secure agreements with existing creditors regarding outstanding debt and to recapitalize the group through an equity issue. In addition, the operating companies will implement cost reduction plans to enhance productivity and take best advantage of the established 3G networks.

In a statement, the company added: "Following the escalating financial turbulence during the autumn, which has made it increasingly difficult to raise new capital with the current debt level; the Company concluded that its interests and the interests of its creditors, customers, business partners and shareholders will be best served by initiating formal restructuring processes in the two major operating subsidiaries. The Company regrets any adverse impact this process may have, but after careful evaluation of all potential alternatives the board of the Company and respective board of the operating subsidiaries are convinced that the restructuring process will give the best opportunity to secure the Company's finances and position the Company for future sustainable success."

The operational activities will be maintained both in Norway and Sweden throughout the reconstruction process.

As result of the financial situation all Swedish companies in the group have established balance sheets for liquidation purposes (Sw. "kontrollbalansräkning"). Respective board of directors of these companies have concluded that the share capital is below the minimum level and as result initiated necessary notices for Extraordinary General Meetings.

Nordisk Mobiltelefon is currently building up operations and rolling out proprietary cellular networks in Scandinavia and other selected European markets based on CDMA in the 450Mhz band - which was vacated by the old NMT operators.

The total number of subscribers end of September in Norway was 30,504 and in Sweden 18,413.

Posted to the site on 28th November 2008