Multicanal announces results of non-consenting APE debtholders election

By Caroline Salls

Pittsburgh, June 29 - Multicanal SA announced the results of its offer to holders of its 9¼% notes due 2002, 10½% notes due 2007, 13 1/8% series E notes due 2009, series C 10½% notes due 2018 and series J floating-rate notes due 2003 that made no election among the three options presented in the company's acuerdo preventivo extrajudicial (APE) before the close of business on Dec. 12, 2003.

According to a 6-K filing with the Securities and Exchange Commission, holders of $176.5 million principal amount of the notes elected among the options in the election offer.

The company said it accepted all elections made by holders of existing notes, subject to reallocation in accordance with the APE.

When added to the existing notes and other debt that had either tendered in or agreed to participate in the cash option solicitation and APE solicitation completed on Dec. 12, 2003, holders of $519 million of the company's outstanding existing debt have made elections.

Holders of about $119 million chose the par option, holders of $355 million chose the combined option; and holders of $45 million chose the cash option.

All existing notes as to which no election was made will receive distributions under the cash option, in accordance with the APE.

Under the offer, the company will issue $56.5 million of new 10-year notes, $85.8 million of new seven-year notes and 124.97 shares each of new class C and class D common stock in exchange for the old notes.

Holders of the old notes could elect to exchange the notes for:

• $1,050 principal amount of new 10-year notes per $1,000 principal amount of old notes;

• $440 principal amount of either 7% seven-year notes or seven-year floating-rate notes and 641 class C shares for each $1,000 principal amount of old notes; or

• $300 in cash for each $1,000 principal amount of old notes.

The APE became effective on Dec. 12, 2003.

A maximum of $76.5 million can be exchanged under the first option; $324.9 million under the combined option and $131 million under the cash option.

Argentine cable television provider Multicanal is attempting to reorganize itself out of court in an extra-judicial proceeding known as acuerdo preventivo extrajudicial. It filed for relief under section 304 on Jan. 16, 2004 with the U.S. Bankruptcy Court for the Southern District of New York.

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