Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!

(Bloomberg) -- Banks with exposure to heavily-indebted broadband providers are selling their loans to distressed debt funds at a discount, a sign of their increasing weariness with the cash-strapped sector.

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In recent weeks, London-based FitzWalter Capital bought around half the bank debt of Germany’s DNS:Net, with lenders heading for the exit after owner 3i Infrastructure ruled out injecting further funds. The private equity group wrote down its stake to zero when the firm’s plan for rolling out cable for fiber-optic broadband faltered.

There have been a number of similar deals involving so-called altnets, smaller firms that aim to challenge incumbents like Deutsche Telekom AG and BT Group Plc.

FitzWalter also took over UK firm G.Network through an administration after buying positions in the group’s debt and equity. One bank to Deutsche Glasfaser, a major German altnet, sold roughly €350 million ($404 million) of loans to Victor Khosla’s Strategic Value Partners in the midst of a €7 billion debt restructuring.

The entrance of distressed debt funds into what is typically bank-dominated infrastructure financing highlights the lengths some lenders are prepared to go to slash exposure to the troubled industry.

Debt trades are typically limited by tough restrictions and banks’ unwillingness to crystallize losses. However, with many lenders involved in several fiber companies that have fallen short on ambitious rollout plans, some are taking the decision to get out.

There could be more painful steps ahead. Altnets borrowed big to fund the expensive work of digging up roads and laying down cables, leaving poor performers with huge loans to shoulder. About 65% of European fiber companies need to refinance in the next two years, according to a survey by AlixPartners.

They were at one point awash with cash, attracting around €85 billion in debt financing alone from 2021 to 2024, figures from industry body FTTH Council Europe show.

Private equity sponsors including EQT AB and Goldman Sachs Asset Management, and banks from NatWest Group to Societe Generale SA, saw a surefire bet given government backing for improved connectivity and trends in homeworking after the pandemic.

But money has become more scarce as higher inflation and financing costs undermine debt-fueled business plans. Some have emerged from the ructions fairly unscathed, given different regulatory regimes and building requirements, but the intensely competitive markets in Germany and the UK have led to problems that’s inflicted heavy losses on investors.

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“There’s an injection of reality that has now landed quite heavily into the market,” said Stuart Cockburn, a partner at AlixPartners in London.

Land Grabs

The altnet idea seemed simple: Finance the fastest and biggest expansion possible to grab customers and capitalize on the break-up of former monopolies.

But while newer players built vast amounts of cable, customer signups hadn’t kept pace with spending, and some had very little cashflow to show for it.

“There was a focus on land grabbing — building as much fiber as you could so that you would be there sooner than your competitor,” said Jeroen Kleinjan, global lead for telecom at ING Groep. “There wasn’t sufficient focus on actually connecting subscribers to the network.”

At the same time, Covid-era lockdowns underlined to incumbents the importance of fiber, and they began accelerating construction of their own networks. Combined, these factors quickly created refinancing difficulties, even for wholesale providers that build the infrastructure for retail-focused Internet providers.

Costly Restructurings

Restructurings have proved expensive for both lenders and sponsors alike. Deutsche Glasfaser, which agreed a debt overhaul in April, saw sponsors provide €845 million in preferred equity to support the company, but only in exchange for lenders agreeing to subordinate €1.7 billion of debt — pushing their claims further back in the queue for repayment. Banks also had to provide €400 million in new financing. Deutsche Glasfaser declined to comment.

In some cases, lenders have been forced to take over a company themselves as a last resort. A consortium of creditors including the UK’s state-backed National Wealth Fund, ABN Amro and NatWest earlier this year took control of Gigaclear, a fiber provider for rural areas in England.

The slew of negative news means many lenders have grown reluctant to lend to the sector. DNS:Net blamed its inability to refinance at the end of last year on the ongoing restructuring of a major German altnet — likely Deutsche Glasfaser.

“It’s like a gate that is closing,” said Susanne Küppers, chief financial officer of German fiber operator GVG Glasfaser, which took longer than expected to complete what should have been a routine refinancing. “Banks become unwilling invest further in the same sector.”

Even once a company wins over lenders, some may still need funding down the line.

UK-based CityFibre may need to raise about £1 billion to fund growth plans after renegotiating its debt last year as part of a recapitalization. The country’s largest altnet already got £2.3 billion from lenders such as Lloyds Banking Group Plc and SocGen as well as shareholders.

CityFibre is among those hoping to grow through acquisitions. Buying other companies and growing “a wider footprint is a no brainer for us,” said Assia Belkahia, a partner at Antin Infrastructure Partners, a major shareholder in the firm.

In the UK, Nexfibre — backed by Telefonica SA and Liberty Global — agreed this year to acquire Netomnia in a £2 billion deal. Shareholders are injecting £1 billion of funding to support the transaction.

Deals can be slow given the potential for disagreement over valuations, and there’s no guarantee of success.

Germany’s Unsere Grüne Glasfaser, a Telefonica-Allianz SE joint venture, acquired rival Infrafibre for just €1 in 2024, betting it could boost its business by acquiring a peer on the cheap.

But the integration of two fibre networks plus Infrafibre’s retail business isn’t without challenges. The company is engaging with lenders on a refinancing which will test financiers’ belief in the company’s ability to see through a costly consolidation. The process is currently ongoing “without any immediate pressure” from debt covenants or funding arrangements, a company spokesperson said.

--With assistance from Paula Doenecke, Arno Schütze and Giulia Morpurgo.

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Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!

ICG PLC

TR-1: Standard form for notification of major holdings

1. Issuer Details ISIN GB00BYT1DJ19 Issuer Name ICG PLC UK or Non-UK Issuer UK
2. Reason for Notification An acquisition or disposal of voting rights
3. Details of person subject to the notification obligation Name Societe Generale City of registered office (if applicable) London Country of registered office (if applicable) United Kingdom
4. Details of the shareholder Full name of shareholder(s) if different from the person(s) subject to the notification obligation, above

City of registered office (if applicable)

Country of registered office (if applicable)

5. Date on which the threshold was crossed or reached 05-Jun-2026
6. Date on which Issuer notified 08-Jun-2026
7. Total positions of person(s) subject to the notification obligation

. % of voting rights attached to shares (total of 8.A) % of voting rights through financial instruments (total of 8.B 1 + 8.B 2) Total of both in % (8.A + 8.B) Total number of voting rights held in issuer Resulting situation on the date on which threshold was crossed or reached 4.986204 0.069626 5.055830 14301921 Position of previous notification (if applicable) 4.089049 0.074592 4.163641

8. Notified details of the resulting situation on the date on which the threshold was crossed or reached 8A. Voting rights attached to shares

Class/Type of shares ISIN code(if possible) Number of direct voting rights (DTR5.1) Number of indirect voting rights (DTR5.2.1) % of direct voting rights (DTR5.1) % of indirect voting rights (DTR5.2.1) GB00BYT1DJ19 14104962 4.986204 Sub Total 8.A 14104962 4.986204%

8B1. Financial Instruments according to (DTR5.3.1R.(1) (a))

Type of financial instrument Expiration date Exercise/conversion period Number of voting rights that may be acquired if the instrument is exercised/converted % of voting rights Sub Total 8.B1

8B2. Financial Instruments with similar economic effect according to (DTR5.3.1R.(1) (b))

Type of financial instrument Expiration date Exercise/conversion period Physical or cash settlement Number of voting rights % of voting rights Contract For Difference 25/02/2028 25/02/2028 Cash 26029 0.009201 Contract For Difference 02/05/2029 02/05/2029 Cash 145930 0.051587 Contract For Difference 01/12/2027 01/12/2027 Cash 25000 0.008838 Sub Total 8.B2 196959 0.069626%

9. Information in relation to the person subject to the notification obligation
10. Person subject to the notification obligation is not controlled by any natural person or legal entity and does not control any other undertaking(s) holding directly or indirectly an interest in the (underlying) issuer.

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Ultimate controlling person Name of controlled undertaking % of voting rights if it equals or is higher than the notifiable threshold % of voting rights through financial instruments if it equals or is higher than the notifiable threshold Total of both if it equals or is higher than the notifiable threshold

10. In case of proxy voting Name of the proxy holder

The number and % of voting rights held

The date until which the voting rights will be held

If date does not apply, explain below

11. Additional Information

12. Date of Completion 08-Jun-2026

13. Place Of Completion London, United Kingdom

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Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!

ICG PLC: TR-1-Bericht über die Erreichung eines Schwellenwerts bei der Gesellschaft ICG PLC. Die Societe Generale hat am 02.06.2026 einen Anteil von 4,163% an den Stimmrechten der Gesellschaft erreicht.

Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!

Endeavour Mining PLC: TR-1-Bericht über die Änderung der Stimmrechtsanteile von BlackRock, Inc.

Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!

ICG PLC: TR-1-Bericht über die Erreichung eines Schwellenwerts bei der Gesellschaft ICG PLC. Der Bericht enthält Informationen über den Kauf oder Verkauf von Stimmrechten und die daraus resultierende Situation.

Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!

ICG PLC TR-1: Standardform für Benachrichtigung über wesentliche Beteiligungen ... ...

Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!

ICG PLC: TR-1-Bericht über die Änderung der Stimmrechtsanteile. Societe Generale hat einen Anteil von 5,018252 % an ICG PLC erworben.

Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!

ICG PLC: So hat Societe Generale seine Beteiligung an ICG PLC geändert. Die Gesellschaft hat am 19. Mai 2026 eine Beteiligung von 4,899733 % an ICG PLC erworben und hält nun insgesamt 14106316 Stimmrechte. Die Beteiligung wurde am 20. Mai 2026 gemeldet.

Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!

ICG PLC. TR-1: Standardform für die Benachrichtigung über wesentliche Beteiligungen. Anschaffung oder Veräußerung von Stimmrechten.

Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!

ICG PLC ist Gegenstand eines TR-1-Berichts. Societe Generale hat eine Anzahl von Aktien erworben, was zu einer Erhöhung der Stimmrechte führte.