Multicanal APE becomes effective

New York, Dec. 15 - Multicanal SA said its acuerdo preventivo extrajudicial, or APE, to restructure its debt became effective as of the close of business on Dec. 12 after all conditions were satisfied.

The effectiveness follows the expiration of Multicanal's previously announced solicitation of consents from the holders of its 9¼% notes due 2002, 10½% notes due 2007, 13 1/8% series E notes due 2009, 10½% series C notes due 2018 and series J floating-rate notes due 2003, as well as the holders of its bank debt, to the company's exercise of an APE to restructure its debt.

As part of the process, Multicanal, a Buenos Aires based company, was offering holders a cash option, under which it would purchase up to $131 million total amount of debt for $300 per $1,000 principal amount.

The consent solicitation expired as scheduled at 5 p.m. ET on Dec. 12 without extension.

As of that deadline, holders of $342.6 million principal amount of its existing bond and bank debt had either tendered in or had agreed to participate in the cash option solicitation and APE solicitation, consisting of $210.5 million of notes tendered to JPMorgan Chase as exchange agent and $132.2 million of additional notes and bank debt committed to the APE solicitation and cash option solicitation under binding agreements executed by the company and the holders of such existing debt.

The company accepted all of the $342.6 million of notes tendered under the APE solicitation.

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