Impsat signs agreements to restructure $125.6 million of debt

New York, Aug. 2 - Impsat Fiber Networks, Inc. said that it, along with its Impsat, SA subsidiary in Argentina and Impsat Communicacoes Ltda. subsidiary in Brazil, has signed agreements to restructure $125.6 million of the subsidiaries' debt.

On closing of the transaction, Impsat will pay down the debt by $18.3 million.

The remaining $38.9 million owed by Impsat Argentina and $68.4 million owed by Impsat Brazil will be repaid by $5 million in 2006, $20 million in 2007, $25 million in 2008 and $57.3 million in 2009.

Interest on the restructured debt will be 12%. Financial covenants will be amended to "reflect current financial and operating conditions."

Impsat will be able to call the restructured debt at 101 in the first year and par after that. If the companies can obtain financing on better terms, the debt can be refinanced at par in the first 90 days.

The Buenos Aires, Argentina, telecommunications and internet company said the transaction was approved by a special committee of its board of directors on July 28. The committee was made up of independent directors and, as previously announced, was formed to evaluate and negotiate the restructuring after the debt was acquired by Morgan Stanley Senior Funding, Inc. and accounts of WR Huff's WRH Partners Global Securities, LP from Nortel Networks Ltd.

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