Multicanal further extends debt restructuring solicitation

New York, Oct. 3 - Multicanal SA said it extended to 5.00 p.m. ET on Dec. 12 its solicitation for its debt restructuring. It was previously set to expire at 5.00 p.m. ET on Oct. 14.

As of 5.00 p.m. ET on Oct. 1, holders of $279.2 million or 53% of the principal amount of the existing debt have either tendered in the cash option solicitation or agreed to participate in the APE solicitation, up from $268.3 million or 51.1% of the principal amount as of 5.00 p.m. ET on Sept. 29.

As previously announced, Multicanal is seeking consents from holders of its 9¼% notes due 2002, 10½% notes due 2007, 13.125% series E notes due 2009, series C 10½% notes due 2018 and series J floating-rate notes due 2003 and its bank debt powers of attorney in favor of an attorney-in-fact to execute an APE.

Under the APE solicitation, for each $1,000 principal amount of existing debt tendered in connection with the APE Solicitation holders can choose to receive either the par option of $1,050 principal amount of 10-year step-up notes or the combined option $440 principal amount of either 7% seven-year notes or seven-year floating-rate notes and 641 class C shares of common stock.

In total, The Buenos Aires, Argentina company is seeking to exchange $76.5 million principal amount of existing debt for $80.3 million of 10-year notes and $143.0 million principal amount of existing debt for $143.0 million of seven-year notes and to capitalize $181.9 million principal amount of existing debt. And it is look to retire $130 million under the cash option.

No accrued and unpaid interest will be paid under the APE solicitation.

It is also offering a cash option in which it is seeking to buy up to $131 million of its existing debt at a price of $300 per $1,000 principal amount. Holders who select the cash option will be required to execute the APE.

Interest on the cash payment will accrue 2% per annum from the APE confirmation date up to but excluding the date on which the cash payment is made. No accrued and unpaid interest will be paid on debt tendered under the cash option.

The minimum participation level for the APE solicitation is now 66.67% of the sum of the total amount of bank loans and the amount of existing notes held by investors that attend and vote in an APE confirmation meeting.

A confirmation meeting for the APE is scheduled for Dec. 10.

Holders who have tendered under either solicitation are no longer permitted to withdraw.

The information agent is D.F. King & Co., Inc. (212 493-6920).

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