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Correction: Multicanal section 304 case approved in U.S., APE becomes binding on U.S. creditors
Multicanal SA's Section 304 petition was approved by the U.S. Bankruptcy Court for the Southern District of New York at a hearing on May 18. Due to incorrect information supplied by the company, Prospect News incorrectly reported on May 22 that a hearing would be held on June 18.
A corrected version of the story follows.
Pittsburgh, May 19 - Multicanal SA said its Section 304 petition was approved by the U.S. Bankruptcy Court for the Southern District of New York on May 18 and its acuerdo preventivo extrajudicial (APE) will be binding on creditors in the United States.
The ruling was made on May 18.
The New York court also dismissed the involuntary bankruptcy petitions against Multicanal.
Under the decision, creditors in the United States will be treated in the same way as those in Argentina. The APE will also be binding on any third parties in the United States.
The court's decision follows Multicanal's disclosure on May 16 that it expected to complete its Section 304 proceedings quickly following resolution of issues surrounding recognition of its APE in the United States.
According to a 6-K filing with the Securities and Exchange Commission on May 16, W.R. Huff and other parties opposing recognition of the company's APE in the United States sold substantially all of their holdings in Multicanal to a third party who supports U.S. recognition of the APE.
In addition, Multicanal said the buyer of Huff's holdings cured a dispute in connection with discrimination of U.S. retail holders under the APE that brought the agreement into compliance with U.S. securities law.
As a result, all objections to U.S. recognition of the APE were withdrawn.
Argentine cable television provider Multicanal filed for bankruptcy relief under Section 304 on Jan. 16, 2004.
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