Vivendi Nears Bank Deal as AOL TW Secures New Credit

09 July 2002

Floundering media mammoth Vivendi Universal says it is nearing a deal with its banks to gain some breathing space as investors worry about its shortage of cash.

The group is negotiating a new credit line of €1 billion ($0.99bn; £0.64bn). Although this figure is not enough to solve Vivendi’s problems – some analysts believe it needs to cover a potential cash shortfall of €3bn to €4bn with new loans – it will give the media firm time to put together a longer-term solution.

Separately, Vivendi's fellow media giant AOL Time Warner reassured investors as to its liquidity by securing two new credit lines worth $10bn. These will replace two lines set to mature later this year

Data sourced from: multiple sources; additional data by WARC staff