Galaxy Lenders Pull $28M Credit Facility

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SIKESTON, MO.-Lenders cut off a $28-million senior credit facility for Galaxy Telecom L.P., a move one analyst called a possible effort to force the cable operator into a sale.

Galaxy told the Securities and Exchange Commission on Jan. 24 that Fleet National Bank effectively cut off the credit facility because it failed to make an interest and principal payment due Dec. 31. The bank said it would not restart the credit line until the debt is paid in full or discharged.

Galaxy executives have been trying to sell the company for more than a year. In the past year, three potential deals fell through. The MSO has about 123,000 subscribers in 13 states.

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