Private Credit Firms Seize Control of Telecom Supplier Netceed in Debt Restructuring

Private Credit Lenders Assume Ownership of Telecom Supplier

Private credit firms including Pemberton Asset Management, Blue Owl Capital Inc., and Hayfin Capital Management are taking control of telecommunications supplier Netceed through a debt-for-equity swap arrangement, according to reports from people familiar with the matter. The restructuring represents a significant shift in ownership for the Cinven-controlled company, which has been facing financial challenges in the competitive telecom equipment sector.

Private Credit Lenders Assume Ownership of Telecom Supplier
Creditors Exchange Debt for Equity Stakes
Substantial Liquidity Injection Included
Private Equity Background and Sector Context
Industry Implications and Future Outlook

Creditors Exchange Debt for Equity Stakes

Sources indicate that all creditor parties have agreed to write off substantial portions of their outstanding debt in exchange for ownership positions in the reorganized company. The debt-for-equity arrangement, a common debt restructuring mechanism, allows Netceed to significantly reduce its debt burden while giving lenders direct stakes in the company’s future performance. The anonymous sources, who spoke on condition of confidentiality, confirmed that the agreement provides a path forward for the struggling supplier.

Substantial Liquidity Injection Included

As part of the comprehensive restructuring package, Netceed will reportedly gain access to approximately €70 million ($81.2 million) in new liquidity, according to the same sources. This cash infusion is expected to provide critical operational breathing room and fund continued operations while the company implements its turnaround strategy. The liquidity component addresses immediate working capital needs and positions the company for potential recovery under new ownership.

Private Equity Background and Sector Context

Netceed has been controlled by European private equity firm Cinven, which originally acquired the business as part of its telecommunications investment strategy. The transition to private credit ownership highlights the growing role of alternative lenders in corporate restructurings, particularly in capital-intensive sectors like telecommunications infrastructure. Analysts suggest this type of creditor-led rescue financing has become increasingly common as traditional financing sources remain selective.

Industry Implications and Future Outlook

The involvement of major credit providers like Blue Owl Capital signals continued private credit expansion into complex corporate situations, according to industry observers. The telecom equipment sector has faced multiple headwinds including supply chain disruptions and changing technology demands, creating opportunities for specialized lenders to provide restructuring solutions. The Netceed situation reportedly demonstrates how private credit firms are increasingly stepping in where traditional banks have become more cautious.

Market participants will be watching closely to see how the ownership transition affects Netceed’s competitive position and whether the liquidity injection provides sufficient runway for operational stabilization, according to sector analysts familiar with similar restructurings.