Impsat considering recapitalization

New York, Feb. 11 - Impsat Fiber Networks, Inc. said its board of directors has formed a special committee to look at recapitalization alternatives.

Options to be considered include a repurchase, refinancing or rescheduling of the debt, a capital infusion or other transaction.

Lehman Brothers Inc. is financial adviser.

Formation of the committee follows the announcement in November by Morgan Stanley & Co. Inc. and WRH Partners Global Securities LP (Huff) that they had acquired all the debt securities issued to Nortel Networks Ltd. as part of its reorganization under Chapter 11.

The debt included:

* $91.2 million in term loans made to the company's Brazilian unit, Impsat Communicacoes, Ltda. via Nortel as administrative agent and collateral agent;

* $35.04 million of term loans to Impsat SA, the Argentinean subsidiary, via Nortel as administrative agent and Deutsche Bank Trust Co. Americas as collateral agent;

* $17.63 million of series B 6% senior guaranteed convertible notes due 2011 issued on March 25, 2003 by Impsat;

* $3.71 million lent to Impsat Argentina by Nortel as lender.

Buenos Aires, Argentina-based Impsat is a satellite and landline telecommunications provider.

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