Primacom was taken over in January 2011 by bank lenders including ING Groep and fund managers such as Alcentra Group, Tennenbaum Capital and Avenue Capital following the insolvency of its parent, Primacom AG, in June 2010. This debt for equity swap was achieved through a court procedure at the High Court in London.

Lenders returned to the court in December 2011 after Primacom's business, which supplies 1 million households in Germany with cable TV, failed to grow sufficiently, forcing lenders to restructure again.

The lenders injected the 20 million euros as new short term senior debt, which is expected to be converted into a three-year loan in due course, court documents show. The new funds will be used to back new investments in the cable network to boost growth.

In addition, 36.7 million euros of debt was shifted from the balance sheet of Primacom to its parent company Medfort. An additional 32.8 million euros of debt will be shifted in the same way if the owners are unable sell the business before the end of the year, a lawyer close to the deal said.

No one at Primacom was immediately available to comment.

The lenders already injected 30 million euros of debt into the business during last year's restructuring. Primacom appointed a new management team last summer to help turn the business around. ($1=0.7545 euros) (Editing by Greg Mahlich)

• A Permanent Economic Emergency