Telecom Argentina Pays Off Outstanding Renegotiated Debt

­Telecom Argentina has paid off the remaining US$352 million of a US$1.88 billion debt that had been renegotiated with its creditors following the financial crisis in the country in 2001/2. The company repaid the debt five years ahead of schedule.

In August 2005, after the outbreak of the Argentine crisis of 2001/2002, Telecom Argentina reached an agreement with its local and international financial creditors taking into consideration the repayment capacity of the Company and without affecting the sustainability of the Telecom Group's businesses.

Chief Executive Officer Franco Bertone stated, "Shareholders' support was essential for the restructuring of our financial obligations." He added, "We were able to meet the financial obligations agreed to in 2005 thanks to the effort and commitment of our people together with efficient and disciplined management of our operations. A new stage of development for the Telecom Group begins today, which we will face with our financial and operational strengths to grow in market share, revenues and results."

Telecom Argentina is the parent company of a telecommunications group in Argentina, where it offers directly or through its controlled subsidiaries local and long distance fixed-line telephony, cellular, data transmission and Internet services, among other services. Additionally, through a controlled subsidiary, the Telecom Group offers cellular services in Paraguay.

Telecom Argentina is controlled by Sofora Telecomunicaciones, which itself is roughly owned equally by Telecom Italia and local firm, Werthein Group. There has been a shareholder battle between the two companies for control of the company lasting the past couple of years.

Telecom Italia has been reported to have hired advisors to help it sell its indirect stake in Telecom Argentina following several legal defeats in the local courts over its holding in the company.

Posted to the site on 16th October 2009