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Alcatel-Lucent SA (NYSE:ALU) In Talks With Goldman Sachs Over Asset-Backed Loan

Alcatel-Lucent (NYSE:ALU) is in talks with Goldman Sachs (NYSE:GS) over a possible asset-backed loan, according to reports Bloomberg. The French Mobile telecommunications company reported Q3 earnings results that beat analysts estimates but exhibited signs of financial distress.

It is not a surprise that Alcatel-Lucent is thinking of additional funding after posting an overdraft of EUR 84 million in the most recent quarter. The amount to be received is yet to be disclosed.

The funding will be used to strengthen Alcatel-Lucent’s balance sheet due to recent losses. Alcatel-Lucent has been bleeding cash, but still holds a sum of EUR 4.7 billion, worth of marketable securities.

The company is also noted to be considering a possible divestiture in some of its enterprise assets, such as enterprise unit and undersea cable-making division. 

The report noted that talks about divestiture in its undersea cable-making division, and getting cash from the asset-backed loan were at early stages and that the resulting sum total is estimated at EUR 1 billion, sources familiar with the matter told Bloomberg.
 

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About Nicholas Maithya

I am a writer focussing on disruptive technology, Fintech, Big Data and Internet of Things, Online Marketing trends, and investments. When I am not writing about these, I am probably in the gym working out, out and about with family, watching the news (basically business/technology) or soccer. That's why I do sometimes cover soccer-related stories.

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