August 7, 2012 / 2:20 PM / 5 years ago

VTB Bank, CCBank to acquire Bulgarian telecoms firm

SOFIA, Aug 7 (Reuters) - Bulgarian lender Corporate Commercial Bank (CCBank) and a unit of Russia’s VTB Bank, VTB Capital, have agreed to take over debt-ridden Bulgarian telecoms company Vivacom, Vivacom said on Tuesday.

Vicacom, whose debts amount to 1.65 billion euros ($2.1 billion), its creditors and the two investors have agreed on a restructuring plan which is to be launched later this month. The deal is expected to be closed in September.

The transaction is subject to certain conditions, including approval of regulatory and competition authorities, the statement said.

Under the plan, CCBank and VTB Bank have offered to pay 130 million euros in cash to the senior lenders for a majority of the equity, with 588 million euros of reinstated loans and a minority of the equity to be allocated to senior secured lenders, Vivacom has said. ($1 = 0.8056 euros) (Reporting by Tsvetelia Tsolova; Editing by Greg Mahlich)

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