-- Telecom Argentina has cancelled the remaining portion of its debt issued in 2005 for an amount equivalent to US$ 1.9 billion, in accordance with the terms and conditions of the Acuerdo Preventivo Extrajudicial ("APE").-- The debt was prepaid 5 years in
BUENOS AIRES, Argentina, Oct. 15, 2009 (PRNewswire-FirstCall) -- Telecom Argentina S.A. (NYSE: TEO, BASE: TECO2), one of Argentina's leading telecommunications groups, announced today that it has cancelled the remaining portion of the debt issued on August 31, 2005 in accordance with the terms and conditions of the APE executed with its financial creditors for the equivalent of US$ 1,883 million.
In August 2005, after the outbreak of the Argentine crisis of 2001/2002, Telecom Argentina reached an agreement with its local and international financial creditors taking into consideration the repayment capacity of the Company and without affecting the sustainability of the Telecom Group's businesses.
Chief Executive Officer Franco Bertone stated, "Shareholders' support was essential for the restructuring of our financial obligations." He added, "We were able to meet the financial obligations agreed to in 2005 thanks to the effort and commitment of our people together with efficient and disciplined management of our operations. A new stage of development for the Telecom Group begins today, which we will face with our financial and operational strengths to grow in market share, revenues and results."
The efficient management of the resources enabled the Company to cancel the debt issued in accordance with the terms and conditions of the APE 5 years in advance of the original repayment schedule. With the cancellation performed today, Telecom Argentina has anticipated the commitment undertaken with local and international financial markets pursuant to the APE.
Telecom Argentina is the parent company of a leading telecommunications group in Argentina, where it offers directly or through its controlled subsidiaries local and long distance fixed-line telephony, cellular, data transmission and Internet services, among other services. Additionally, through a controlled subsidiary, the Telecom Group offers cellular services in Paraguay. The Company commenced operations on November 8, 1990, upon the Argentine Government's transfer of the telecommunications system in the northern region of Argentina.
Nortel Inversora S.A. ("Nortel"), which acquired the majority of the Company from the Argentine government, holds 54.74% of Telecom Argentina's common stock.
