Wind Hellas Seeking to Restructure Debt

­The parent company of Greek mobile network operator, Wind Hellas says that it is in talks with its majority shareholder, Weather Investments to restructure its debt as the company faces increased competition in the local telecoms market. The company ended July with debt of EUR 3.2 billion.

"This is a serious situation that requires a solution in the near term," Chief Executive Officer Emad Barsoum said on a phone call with investors "We have had extensive discussions on the situation, including with our shareholder." He added that securing a sustainable capital structure will enable it to return to a stable financial situation by 2012.

Weather Investments is an Italy based holding company that is majority owned by Egypt's Naguib Sawiris - who also controls Orascom Telecom.

Wind Hellas reported second-quarter revenues down by 10.6% to EUR 279.1 million from a year ago. EBITDA fell 10.1 percent to EUR 83.7 million, while the company reported a net loss of EUR 39.5 million due to write downs on its derivatives.

The cost of insuring Wind Hellas' debt from default soared to a six-month high on the news of the restructuring talks. The talks may trigger payouts on credit insurance.

Last year, Fitch Ratings downgraded Greek mobile operator, Wind Hellas' Long-term Issuer Default Rating (IDR) to 'B-' (B minus) from 'B' on concerns about its leverage and future cashflow generation.

Posted to the site on 29th August 2009