DUSSELDORF, Germany-Embattled German telecom company MobilCom has narrowly avoided bankruptcy, with Gerhard Schmid, its former chief executive, finally reaching an agreement for the transfer of his stake in the company.
Schmid has agreed to transfer his stake to a trustee, which was a requirement for MobilCom to receive a $398 million bailout package the German government engineered earlier this year.
“The parties will now start to finalize the detailed terms of the restructuring that have been agreed with France Telecom, the bank consortium as well as the details of the social plan,” MobilCom said in a statement. “A final binding agreement on all elements of the restructuring is expected to be signed within the next days.”
MobilCom holds a third-generation license in Germany and currently resells mobile services in the country.
