Vivendi Says It Has Obtained Credit Facility
Updated: Wednesday, July 10, 2002 03:30 AM ET Printer-friendly version
Dow Jones Newswires
PARIS -- French media company Vivendi Universal (V, news, msgs) confirmed Wednesday that it has obtained a one billion euro ($994.5 million) unsecured credit facility to tackle its short-term liquidity problem.
The company said it has secured the loan from "a group of international banks" but didn't disclose their identities.
They are thought to be Societe Generale, BNP Paribas, Credit Lyonnais, Deutsche Bank (DB, news, msgs), Credit Suisse First Boston and Citigroup Inc (C, news, msgs).
The company also said it is working with its banks to put refinancing in place to address its long-term requirements.
Vivendi Universal's new chairman and chief executive, Jean-Rene Fourtou, had acknowledged last week that the company was facing a short-term liquidity crisis. Vivendi has to pay back 1.8 billion euros by the end of the month.
He had committed himself to finding a solution to the short-term cash crunch within two weeks of his appointment.
He said in a prepared statement: "This is concrete evidence of the continued support and confidence of our banks as we work to restore stability and strength to the group's finances."
Sources said Tuesday that Vivendi is working on securing a further 2.8 billion euro loan from its banks.
Observers had no doubts that banks, in particular French banks, would back the company. Societe Generale's Marc Vienot, BNP Paribas' Dominique Hoenn and insurer Axa's (AXA, news, msgs) Claude Bebear all sit on Vivendi's board of directors.
Copyright 2002 Dow Jones & Company, Inc.
All Rights Reserved
http://www.quicken.com/investments/...ies/dj/20020710/ON20020710000100.htm&symbol=V
Updated: Wednesday, July 10, 2002 03:30 AM ET Printer-friendly version
Dow Jones Newswires
PARIS -- French media company Vivendi Universal (V, news, msgs) confirmed Wednesday that it has obtained a one billion euro ($994.5 million) unsecured credit facility to tackle its short-term liquidity problem.
The company said it has secured the loan from "a group of international banks" but didn't disclose their identities.
They are thought to be Societe Generale, BNP Paribas, Credit Lyonnais, Deutsche Bank (DB, news, msgs), Credit Suisse First Boston and Citigroup Inc (C, news, msgs).
The company also said it is working with its banks to put refinancing in place to address its long-term requirements.
Vivendi Universal's new chairman and chief executive, Jean-Rene Fourtou, had acknowledged last week that the company was facing a short-term liquidity crisis. Vivendi has to pay back 1.8 billion euros by the end of the month.
He had committed himself to finding a solution to the short-term cash crunch within two weeks of his appointment.
He said in a prepared statement: "This is concrete evidence of the continued support and confidence of our banks as we work to restore stability and strength to the group's finances."
Sources said Tuesday that Vivendi is working on securing a further 2.8 billion euro loan from its banks.
Observers had no doubts that banks, in particular French banks, would back the company. Societe Generale's Marc Vienot, BNP Paribas' Dominique Hoenn and insurer Axa's (AXA, news, msgs) Claude Bebear all sit on Vivendi's board of directors.
Copyright 2002 Dow Jones & Company, Inc.
All Rights Reserved
http://www.quicken.com/investments/...ies/dj/20020710/ON20020710000100.htm&symbol=V