Brazil media company completes major corporate bond restructuring deal
by Brian Turner
Globo Comunicacoes Participators (Globopar), the leading media company in Brazil, is one step closer to finishing the construction of the largest corporate bond restructuring deal in that South American nation’s history.
On Monday the company entered into an auction process that will refinance $1.3 billion in debt.
Globopar found itself in debt after losses in its cable division in the 1990s and after it could not service its debt after Brazil’s currency was devalued in 2002.
The company has been in negotiations with Brazilian and international creditors for two years to restructure its debt.
In April, holders of Globopar’s bond issues agreed to exchange old debt for new securities or cash. The banks involved agreed to the deal last week.
The auction process will take about a month to complete and will give creditors the choice of access to $200 million in cash payouts or receiving debt worth more than the face value of the defaulted bonds they hold.
Discuss this in the Finance Markets forums
Story link: Brazil media company completes major corporate bond restructuring deal
Add to Bookmarks:
Related financial stories to: Brazil media company completes major corporate bond restructuring deal
- Dollar fall forces Heineken restructuring
- Brazil corruption enquiry hits equity exchange
- Barclays, Amro agree on deal
- Company accounts unreliable
- Euro stumbles while yen benefits from corporate spending
- Farmers march in Brazil protest
- New York markets down on corporate reports
- European company fortunes mixed on ADR index
- UK unemployment set to rise with Virgin Media, Taylor Wimpey, GSK and Psion announcing job losses
- Brazil threatens action over AIDS drugs
Tags:
Previous: « Asian equities mixed
Next: Sterling suffers low on poor retail news »
Visited 512 times, 2 so far today
