Parlem investors approve €7.9M raise and €17.5M debt swap

What's the deal? Shareholders of Catalan telecom operator Parlem approved a €7.9 million capital increase and the conversion of €17.5 million in debt owed to venture firm InvereadyDealroom has a profile for this one. Try Dealroom →. The vote passed at a morning general meeting by roughly 70% of capital.

What does Parlem do? It operates as a virtual telecom operator in Catalonia. The company said the fresh capital is meant to shore up its weakened financial position.

Who's backing it? Inveready, founded and led by Josep Maria Echarri, and Global Portfolio InvestmentsDealroom has a profile for this one. Try Dealroom → — the vehicle of the owners of children's fashion chain MayoralDealroom has a profile for this one. Try Dealroom → — led the moves. After swapping its debt but then being diluted by the cash raise, Inveready will hold just under 50%, becoming the reference shareholder.

What else changed? The two lead investors pushed to expand the board to 10 members and appoint six new directors: four proprietary and two independent. Inveready will take four of the 10 seats — 40% — though its capital stake is larger.

Before the deals, Global Portfolio Investments held 19.15% as the top shareholder, ahead of Inveready EvergreenDealroom has a profile for this one. Try Dealroom → at 11.53%. Founder and chairman Ernest Pérez-Mas, along with Ona Capital PrivatDealroom has a profile for this one. Try Dealroom →'s 12.51% stake, previously sat on a four-member board.

The signal: The combined debt-for-equity swap and equity injection mark a sharp step-up from Parlem's prior position, reflecting investors moving decisively to stabilise a struggling operator while consolidating control at the board and ownership level.

Read more: Expansion

Image credit: Cerillion