The Latvian enterprise section of the register of commercial mortgages shows five pledge agreements over Baltkom GSM assets and capital shares as well as capital shares in Tele2 Holdings, which belongs to the NetCom group and is registered as the owner of Baltkom GSM. The maximum amount of the claim under each of the agreements is 123.6 million lats ($199.35) but a company representative has said that the aggregate amount of the deal was also 123.6 million lats.
Sweden's telecommunications company NetCom usually pledges its properties to obtain working capital, Bill Butler, the executive director of Baltkom GSM, told reporters Dec. 7.
"Such practice has been characteristic of NetCom during the entire period of its operations," Butler said.
A loan of some 120 million lats was taken and Baltkom GSM and its owner, Tele2 Holdings, were pledged for 123.6 million lats to obtain the needed working capital.
Baltkom GSM and Tele2 Holdings have been pledged to the British branch of CIBC World Markets which belongs to the second largest Canadian bank, the Canadian Imperial Bank of Commerce. In October Tele 2 AB announced the purchase of Baltkom GSM for some $277 million, including $53 million in Baltkom GSM liabilities. At present there are two mobile-telecommunication operators in Latvia, Baltkom GSM and Latvijas Mobilais Telefons.