Belgium-based television services company Alfacam said on Tuesday it had secured a financial lifeline from family-owned Indian conglomerate Hinduja Group in an initial deal that could also strengthen its position in Asian markets.
Alfacam, to which a court granted creditor protection in October, said it had a preliminary deal for a 24 million euro ($31 million) credit facility and 6 million euro equity injection from Hinduja.
Alfacam, with broadcast services, TV studios and the Europe's largest fleet of outside broadcast vans, said its memorandum of understanding was valid until the end of January 2013. Banks had agreed to suspend repayments until then.The company said that Hinduja Group could offer Alfacam support to deepen its business in India, the Middle East and Southeast Asia.
Alfacam breached its financial covenants in March and said it was looking to raise fresh capital after expansion into countries such as Brazil and India cost more than it had originally planned.
Alfacam shares listed on Euronext Brussels in May 2007 at 18 euros. They last traded at 0.77 euros. ($1 = 0.7736 euros)