Telemig, Amazonia get required consents to amend 8¾% notes

By Jennifer Chiou

New York, April 18 - Telemig Celular SA and Amazonia Celular SA obtained the necessary consents to amend Telemig's 8¾% notes due 2009 and Amazonia's 8¾% notes due 2009, according to a 6-K filing with the Securities and Exchange Commission.

The Brasilia, Brazil, telephone companies are soliciting consents to amend the note indentures to address the technical default under financial ratios caused by Amazonia's recording of provisions with regard to contingent liabilities linked to Imposto de Circulação de Mercadorias e Serviços taxes that are the subject of litigation with a few of the Brazilian states and to waive certain past defaults and events of default under the indenture associated with the Imposto provisions.

The companies said they expected to provide a consent payment of $2.50 per $1,000 principal amount prior to 5 p.m. ET on April 16.

Merrill Lynch & Co. was the solicitation agent (888 ML4-TNDR or call collect 212 449-4914). Global Bondholders Services Corp. was the information agent (866 873-6300 or call collect 212 430-3774).

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