Canada’s lycamobilers Lycamobil is facing another round of financial challenges after two years of debt.
It has $1.5 billion in outstanding debt.
The company says it is working with lenders to restructure the debt to allow for a transition to a new corporate structure.
The restructuring plan includes an early repayment of about $500 million of debt that was issued by the Canadian government and has already been repaid.
Lycamobiles revenue fell in the second quarter from the previous year, but it still accounted for nearly 40 per cent of the company’s business.
The government’s debt has fallen significantly, from $2.1 billion to $1 billion in the same period.
The business has been hit by lower-than-expected revenue growth, which is down from 25 per cent in 2015.
The Canadian economy is slowing.
Lycomobil says the company has experienced significant costs related to the economic downturn, but the company says those costs are now under control.
Lycanews shares closed down 1.5 cents at $17.88 in afternoon trading on Tuesday.