Multicanal gives non-consenting APE debtholders 30 days to choose alternate option

By Caroline Salls

Pittsburgh, May 10 - Multicanal SA said noteholders who did not consent to the terms of its acuerdo preventivo extrajudicial will have 30 days to elect an alternate option, according to a company news release.

Multicanal will offer three options to exchange its 9¼% notes due 2002, 10½% notes due 2007, 10½% notes due 2018, 13 1/8% notes due 2009 and floating-rate notes due 2003 under its acuerdo preventivo extrajudicial.

This offer is being extended only to holders of old notes that did not consent to the terms of the APE and/or tender their old notes in connection with an APE solicitation completed on Dec. 12, 2003 and U.S. retail holders that tendered old notes for the cash option by Dec. 12, 2003 under the terms of the APE cash option.

Those who are not U.S. retail holders, but who consented to the terms of our APE and/or tendered old notes by Dec. 12, 2003 may not participate in the exchange offer.

The company will issue $56.5 million of new 10-year notes, $85.8 million of new seven-year notes and 124.97 shares each of new class C and class D common stock in exchange for the old notes.

Holders of the old notes can elect to exchange the notes for:

• $1,050 principal amount of new 10-year notes per $1,000 principal amount of old notes;

• $440 principal amount of either 7% seven-year notes or seven-year floating-rate notes and 641 class C shares for each U.S.$1,000 principal amount of old notes; or

• $300 in cash for each $1,000 principal amount of old notes.

The APE became effective on Dec. 12, 2003.

A maximum of $76.5 million can be exchanged under the first option; $324.9 million under the combined option and $131 million under the cash option.

Argentine cable television provider Multicanal is attempting to reorganize itself out of court in an extra-judicial proceeding known as acuerdo preventivo extrajudicial. It filed for relief under section 304 on Jan. 16, 2004 with the U.S. Bankruptcy Court for the Southern District of New York.

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