Argentina Telecom Personal Finishes Debt Exchange

BUENOS AIRES (Dow Jones)--Telecom Personal, the cellular division of fixed-line provider Telecom Argentina (TEO), has completed its $599 million debt restructuring, the parent company said Friday in a brief statement to the local stock exchange.

Telecom Personal reached 100% creditor agreement for its debt offer in early October and was able to complete its swap without having to seek court approval for the restructuring. Both the mobile unit and its parent defaulted in 2002.

Telecom Personal offered three alternatives in its debt offer: a cash payment and new bonds maturing in 2008, 2014 and 2017, with no nominal discount or haircut; a cash payment and a 2009 bond with a nominal haircut of about 13%; and a cash payment between 65% and 75% determined through a Dutch auction.

Nucleo SA, a Paraguay mobile provider in which Telecom Personal has a 67.5% stake, has also finished its debt restructuring process, the company added.

Telecom Argentina submitted its own $2.63 billion debt restructuring offer for legal approval in late October and the company plans to have its swap completed in early 2005. The parent company and the cellular division offered similar restructuring terms.

-By Wailin Wong, Dow Jones Newswires; 5411-4311-3125; wailin.wong@dowjones.com

(END) Dow Jones Newswires"

Posted to the site on 3rd December 2004