Brazil’s long-distance phone carrier Embratel may invest more than the $540 million initially planned for this year. CEO Carlos Henrique Moreira said that further investments will depend on the success of a capital increase of up to $700 million being carried out by Mexican parent company Telmex. Embratel’s capital increase is slated to be completed on April 27.
Category: Corporate & Sovereign Strategy
Posted inDaily Brief
Snow Pressures Argentina
US Treasury Secretary John Snow said the US would “engage” Argentina to push for a settlement with holdout creditors that own about $20 billion in defaulted Argentine bonds. In February Argentina persuaded holders of $62 billion of a total $82 billion of defaulted bonds to exchange for new securities worth about 30 cents on the dollar.
Posted inDaily Brief
Lavagna Stands Firm
Argentina’s Economy Minister Roberto Lavagna rejected calls by the International Monetary Fund to hold further talks with bondholders who turned down the country’s debt restructuring offer. An IMF spokesman on April 8 said Argentina should “develop a realistic strategy” to resolve the demands of non-participating bondholders. Argentina earlier this year agreed to swap $62.3 billion in defaulted debt for new securities, which the country says ends its three-year default. About 20% of bondholders rejected terms and some are suing the government in US courts to demand full repayment.
Posted inMagazine
Standing Up to the Test
Mexico’s new bankruptcy law has seen – and survived – its first test, the reorganization of papermaking company Corporación Durango.
Posted inMagazine
Very Rough Justice
If the crises of tomorrow are born in the bull markets of today, another Latin American government will default before the decade is out. Creditors beware.
Posted inMagazine
Bankruptcy and Bank Spread – Web Exclusive
Sao Paulo-based law firm Pinheiro Neto Advogados explores the potential effects of Brazil’s new bankruptcy law – and the elements that could threaten its effectiveness. One of the major […]
Posted inMagazine
Same Old Game
The debt exchange ending Argentina’s three-year default is now a fait accompli. But it doesn’t look like it will solve the country’s problems.
Posted inMagazine
A Contender Again
Manuel Medina-Mora, the CEO of Citigroup in Latin America, lays out his plan for the bank’s future
in the region.
Posted inMagazine
Testing the Waters
Telefónica de Argentina took a bold step in May, issuing something the country had nearly forgotten in the years since its 2001 default: a peso-denominated corporate bond. “We knew that […]
Posted inMagazine
Beginning of the End
Nearly three long years after its default, the Argentine government is about to unveil the details of its “final” offer to bondholders.