Impsat fails to pay coupon within grace period, will not make second coupon payment

New York, Jan. 16 - Impsat Fiber Networks, Inc. said it failed to make the interest payment on its $225 million of 12 3/8% senior notes due 2008 within the 30-day grace period.

The Buenos Aires, Argentina broadband company also said that it will not make the $7.6 million interest payment due Jan. 15 on its $125 million of 12 1/8% senior guaranteed notes due 2003. This payment also has a 30-day grace period.

In addition, Impsat said previously announced waivers granted in October 2001 for vendor financing by its principal equipment suppliers expired on Jan. 11. As of Dec. 31, 2001, Impsat had $261.1 million plus accrued interest outstanding on these facilities.

Previously disclosed negotiations with noteholders and vendor financing creditors have made "significant progress," Impsat said. It has retained Houlihan Lokey Howard & Zukin Capital to assist in the negotiations.

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