Reuters
Mexico's Satmex misses debt payment, needs money
Thursday July 1, 4:07 pm ET
MEXICO CITY, July 1 (Reuters) - Troubled Mexican satellite company Satmex missed another debt payment this week as it seeks additional financing to launch a new satellite, seen as vital to its survival.
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Satmex, 49 percent owned by Loral Space & Communications Ltd (OTC BB:LRLSQ.OB - News), on Wednesday missed a principal payment on $205 million worth of floating rate notes, Chief Financial Officer Cynthia Pelini told Reuters on Thursday.
"We remain in talks with creditors," she said.
Satmex, dogged by tight liquidity, a downturn in the global industry and technical failures in one of its satellites, also has $320 million in high yield bonds expiring in November.
Pelini said Satmex has asked creditors to pitch in with an additional $35 million, necessary to complete payments on its Satmex 6 satellite launch insurance.
Unless the company succeeds in restructuring its debt, the Satmex 6 will not be able to take off.
The company lost a third of its capacity in 2000 when its Solidaridad I satellite died. The Satmex 6 is expected to boost revenues and lure clients with deep pockets, including broadcasters, Internet firms and phone companies.
On Monday, a group of investors calling themselves Constellation Group offered $1 for Satmex as well as assuming its debt.
Pelini said the bid offer, which expired Tuesday, came in a letter with no address or telephone number from Constellation Group, and Satmex did not reply. |
