BCI's Colombian Cellular Subsidiary Announces Financial Restructuring Agreement.MONTREAL--(BUSINESS WIRE)--Sept. 8, 1999-- Bell Canada Bell Canada Enterprises (TSX: BCE, NYSE: BCE), legally BCE Inc., is a major Canadian telecommunications company. Through its subsidiaries including Bell Canada, Bell Aliant, Northwestel, Télébec, and NorthernTel, it is the incumbent local exchange carrier for International Inc. (BCI BCI Bat Conservation International BCI Brain-Computer Interface BCI Business Continuity Institute BCI Business Cycle Indicators BCI Banco de Credito e Inversiones (Chilean bank) BCI Bell Canada International ) (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :BCICF) (ME:BI.) (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :BI.) today announced that its Colombian cellular subsidiary, Comcel S.A., has restructured its senior secured term loans. Comcel had been in negotiations with its senior lenders since mid-June 1999 as a result of the downturn in Colombia's economy. In announcing the financial restructuring, Mr. Louis Tanguay, Chairman of Comcel and President and Chief Operating Officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. of BCI stated: "This 2-year financial restructuring agreement will bring some welcome stability to Comcel and will allow the company to focus all of its efforts on the needs of its customers. We look forward to Comcel resuming its growth track as the Colombian economy recovers." Under the terms of the restructuring, Comcel's shareholders will subscribe for additional common shares of Comcel in the aggregate amount of US$75 million, of which US$67.6 million will be used to prepay a portion of Comcel's senior secured loans. The balance of US$7.4 million will be retained by Comcel for working capital purposes. In consideration, Comcel's senior lenders have agreed to defer principal payments in the aggregate amount of US$82.6 million to August 31, 2001, and have also agreed to waive all financial covenants under the loans, with the exception of a maximum leverage test, to August 31, 2001. BCI will contribute US$65 million of the additional equity, resulting in its economic interest in Comcel increasing from 49 percent to 53.9 percent on a fully diluted basis. Comcel is the leading provider of mobile communications services in Colombia, serving over 750,000 subscribers in the Eastern and Western regions of the country. Bell Canada International is in the business of building and developing world-class communications companies in markets outside Canada, with a focus on Latin America and the Asia-Pacific region. The company's affiliated operations provide a range of high quality and innovative services to 4.5 million subscribers in eight countries, primarily via digital, wireless networks. A subsidiary of BCE BCE abbr. 1. Bachelor of Chemical Engineering 2. Bachelor of Civil Engineering BCE Abbreviation for before the Common Era. Inc., Canada's largest communications company, BCI is listed on the Montreal and Toronto stock exchanges Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. under the symbol BI, and on the NASDAQ national market under the symbol BCICF. Visit our web site at www.bci.ca |
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