Dominican Network Fails to Make Debt Payment

The Dominican Republic based, Tricom has announced that adverse economic conditions and the 36.4% year-over-year devaluation of the Dominican peso have affected the Company's operating results and its ability to purchase U.S. dollars in order to service principal and interest on its debt obligations. As a result, the Company announced that, at this time, it will not be making an US$11.4 million interest payment scheduled for September 2, 2003, related to its 11 3/8% Senior Notes due 2004.

The Company has also decided not to proceed with its previously announced exchange offer and consent solicitation with respect to the $200 million aggregate outstanding principal amount of its 11 3/8% Senior Notes due 2004.

Based on the terms of the indenture governing the Senior Notes due 2004, the Company has 30 days to make the aforementioned interest payment in order to avoid a default. The Company is considering options that will enable it to make its interest payment on the 11 3/8% Senior Notes and is evaluating potential financial and strategic alternatives. The Company is currently negotiating with several of its creditors to refinance and restructure its debt and has already secured principal payment waivers and extensions on a number of its borrowings.

The Company has engaged Bear, Stearns & Co. Inc. to assist in evaluating financial and strategic alternatives, which may include the refinancing or restructuring of its existing debt or the sale of all, or a portion, of its assets or business to a third party.

As of March 31, 2003, the Dominican Republic-based company had total debt outstanding of US$473 million."

Posted to the site on 8th September 2003