Troubled telecoms group Versatel rolled closer towards completing a life-saving debt swap deal today when it got a preliminary go-ahead from a Dutch judge.
Versatel has filed for bankruptcy protection in Dutch and US courts to push ahead with the plan, backed by creditors, in which bondholders would erase €1.7 billion in debt from its balance sheet in exchange for 80 per cent of the company.
Irish entrepreneur Mr Denis O'Brien has a 5 per cent stake in the company.
Energis, another of the new breed of carriers fallen on hard times, sold its main UK business to a new company run by its banks in July.
A Versatel spokeswoman said the supervising judge in a Dutch court announced he planned to propose to the court that it approve the plan. An official decision is due on September 18th.
A court in the United States, where Versatel filed for Chapter 11 bankruptcy protection, backed the reorganisation plan last week.
The Dutch judge's decision came after virtually all of Versatel's creditors who have tendered their bonds voted to back the plan that will give them €347 million in cash and 80 per cent of the company.
Current shareholders will own the remaining fifth.