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Tuesday 06th of January 2009
May 10, 2005

Brazil media company completes major corporate bond restructuring deal


by Brian Turner
Brazil media company completes major corporate bond restructuring deal

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.

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Story link: Brazil media company completes major corporate bond restructuring deal


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