Multicanal gets June 2 hearing on dismissing involuntary Chapter 11

By Jeff Pines

Washington, April 29 - Multicanal SA will get a June 2 hearing to determine if the involuntary Chapter 11 filing against it should be dismissed, according to an order filed on April 29 from the U.S. Bankruptcy Court for the Southern District of New York.

A group of Multicanal bondholders including Argentinian Recovery Co. LLC filed a petition to involuntarily throw the company into Chapter 11 on Jan. 28.

Buenos Aires-based Multicanal is trying to reorganize itself in an out-of-court process known as acuerdo preventivo extrajudicial or APE, which is sanctioned by Argentine law.

In a March hearing, the Argentinian group argued the Trust Indenture Act trumped Section 304 of the bankruptcy code, which provides protection to foreign companies reorganizing themselves under their native country's laws, but the judge ruled the Argentine cable television systems operator would retain its protection under 304 until a final decision was made.

The involuntary Chapter 11 case number is 04-10523. The case number for the APE is 04-10280.

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