A director of one of Net?s largest creditors says debts falling due between next October and October 2003 will almost certainly be rolled over. These debts total some 80 million US dollars. Net will have to pay a spread over market rates to persuade the banks to refinance these debts, however, as well as presenting a more detailed business plan to prove feasibility. The net debt totals 1.6 billion reals, with 55% denominated in dollars and less than 24% of that portion hedged against exchange-rate risk.
Tough negotiations ahead
A highly reliable source says Net earlier tried and failed to renegotiate the portion of its debt that fell due in June. The creditor, Bank of America, refused to extend the maturity. To avoid default the MSO opted to draw on its cash reserve. Now it?s trying to refinance debts that fall due between October of this year and next (80 million US dollars). Unlike other banks consulted by PAY-TV News, this source, a key decision maker, says ?Net will have a hard time negotiating with between 13 and 16 creditor banks. Some of them are in no position to reschedule maturities?.