Alves Kablo Faces Cash Crunch: **309 Million Lira** Payment Default, 68 Employees Laid Off

Alves Kablo, one of Turkey’s largest cable service providers, deepened its cash squeeze by failing to make a 309 million lira payment and laying off 68 employees.

Cash Collapse: 309 Million Lira Shortfall

■A payment of 309 million lira was not processed, severely threatening the company’s cash flow.

■The delay undermines supplier relationships, amplifying operational risk.

■Current liquidity ratio dropped to 12%, below industry average.

Rising Operational Costs and Financial Strain

■Procurement and maintenance costs rose by 18%, eroding profitability.

■68 employees, representing 5% of the workforce, were dismissed, signaling a need to re‑structure labor expenses.

■Debt servicing cost climbed to 4.75%, tightening financial flexibility.

Implications and Future Scenarios

■Customer satisfaction score fell from 87 to 73, indicating potential churn.

■Investors began selling shares, reacting to adverse balance‑sheet impacts.

■Management plans a $30 million refinancing within 12 months to improve cash flow.

Market Reaction and Investor Concerns

■On Borsa İstanbul, ALVES shares opened 6% lower.

■Financial analysts remain cautious about the company’s long‑term sustainability.

■Regulatory bodies initiated additional oversight on the company’s operating licences.

Markets react to this situation by highlighting the broader liquidity strain on cable providers. As costs mount, the industry may be forced to rethink competitive pricing and service delivery strategies.