Tricom will not make interest payment on notes, considers sale of assets

By Carlise Newman

Chicago, Sept. 2 - Tricom SA said it will not be making the $11.4 million interest payment scheduled for Sept. 2 on its 11 3/8% senior notes due 2004, and may consider a sale of its assets. The company has also decided not to proceed with its exchange offer and consent solicitation regarding the $200 million of notes.

The company has a 30 day grace period to make the interest payment to avoid a default. Tricom said it is considering options to make the payment and is evaluating financial alternatives.

The long-distance telephone company, based in the Dominican Republic has retained Bear Stearns & Co. Inc. evaluate financial alternatives, which may include refinancing of its debt or the sale of all or a portion of its assets or business to a third party.

Tricom added that it is negotiating with several of its creditors to refinance its debt and has secured payment waivers and extensions on a number of its borrowings.

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