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AT&T Canada bondholders considering options after company refuses meeting
New York, April 18 - An ad hoc committee of AT&T Canada noteholders said it is "considering very carefully the various options available to it" after the company refused a meeting. It also suggested its members might not cooperate with AT&T's planned sale of cable assets to Comcast Corp.
The committee was seeking a meeting to express its concerns about AT&T Canada's business operations and financial prospects. It said it was hoping for a "constructive dialog."
In addition, the committee described AT&T Corp.'s position on AT&T Canada's notes as "particularly troubling." It noted that AT&T executives took part in roadshows for AT&T Canada notes and, the committee said, made commitments that persuaded the ratings agencies to rate AT&T Canada's debt based on anticipated ratings consolidation with AT&T Corp.'s public notes.
However while AT&T has said it intends to complete the purchase of AT&T Canada stock it has said nothing about the notes, the committee said.
"This 'silent treatment' concerns the committee, especially considering the fact that AT&T Corp. will soon be seeking consents from its own public note holders (including many of the committee members) in connection with the Comcast Corp. transaction," the committee said.
Unless AT&T commits to support the AT&T Canada notes, the committee said it will have "no choice but to explore remedies."
The committee is made up of 27 institutional investors holding $1 billion of AT&T Canada's notes.
AT&T Canada referred a call seeking comment to AT&T, saying its own executives were in meetings.
AT&T spokesman Dan Lawler reiterated his company's previous announcements on the issue, saying: "In the past what we have said is that we have an obligation to the equity holders but not to the bondholders of AT&T Canada.
"Nothing has changed with that situation," he told Prospect News.
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