Satmex loses financial commitment from Export-Import Bank

By Reshmi Basu

New York, March 9 - Satélites Mexicanos SA de SV said that the Export-Import Bank of the United States will not extend its commitment to finance certain costs related to the company's Satmex 6 satellite project, according to a 6-K filing with the Securities and Exchange Commission.

The Export-Import Bank's financing was critical to Satmex's planned restructuring, which includes an exchange offer for its high yield bonds, a prepayment of its secured floating-rate notes and funding for the outstanding payments for the launch of Satmex 6, according to the SEC filing.

The Mexico City-based satellite operating company said it is in talks with its financial advisors seeking alternatives for restructuring its debt and financing the remaining payments on Satmex 6.

In order to launch Satmex 6, the company must complete payment of the launch insurance premium and other related payments.

In October, Satmex 6 was completed, and it is currently in Kourou, French Guiana awaiting take off.

In August, Satmex defaulted on its $16.2 million interest payment on its 10 1/8% notes, which also triggered a cross-default provision on its senior secured floating-rate notes due June 20, 2004.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.