Vonage has a deal in principle to refinance the debt that is threatening to bankrupt the company later this year in December. A new financing deal structure will be lead by Silver Point Finance. It’s a fairly complex deal, requiring Vonage to gain additional financing to cover the total $253 million in debt coming due this December. Under the agreement, Silver Point will provide $125 million, and will work with Vonage to raise the remainder. Vonage may have to tap its dwindling cash reserves to close the gap. Vonage has been facing certain bankruptcy for some time, and has made similar announcements in the past few months, only to have to come back to the drawing board. Will this announcement follow suit? It’s tough being the company that pushed VoIP into the mainstream and provided early competitive momentum in the telecom marketplace. What are the odds that they will make it?
Join the Conversation
Don’t Miss Any of Our Content
What’s happening with broadband and why is it important? Find out by subscribing to Telecompetitor’s newsletter today.
Your information will never be shared with any third party.
- Best Practices for Public-Private Partnerships
- OpenVault Broadband Insights (OVBI) Q420 Webinar
- Building Rural Networks with Fixed Wireless Network-as-a-Service (NaaS)
- Delivering Broadband in an Amazon and Netflix Dominated Culture: Are You up to the Challenge?
- Rural Telecommunications Benchmark Study 2020