Broadband company's "land grabbing" backfires: Banks discount off loans, bad funds "sweep up" at low prices.

Wisdom Financial APP has learned that banks holding high debt broadband supplier loans are selling loans to distressed debt funds at a discount, showing that financial institutions are increasingly fed up with the tight funds in the telecommunications industry. In the past few weeks, FitzWalter Capital, based in London, has purchased about half of the bank loans of German DNS:Net. Prior to this, the owner of the company, 3i Infrastructure, ruled out further injections of funds, and banks are seeking to exit. When DNS:Net's plan to lay fiber broadband encountered setbacks, the private equity group wrote down the value of its stake to zero. Similar transactions have appeared multiple times in the field of alternative network operators (altnet). These small businesses aim to challenge existing operators such as Deutsche Telekom and BT.