Satmex Agrees Debt Swap

Following two years of negotiations, Mexican satellite service provider Satelites Mexicanos (Satmex) has reached a deal with its debtholders to swap $523.4 million debt outstanding. The swap will include exchanging part of the debt for equity and longer-term debt. Floating-rate notes due 2004 worth $203.4 million will be swapped for new five-year paper; a further $320 million of bonds in default will be swapped for seven-year notes and shares in the company. Satmex’s debt totals $700 million, of which it owes $188 million to the government.