TVA debuts debt plan

Firm to swap some of $142 million debt with Abril

SAO PAOLO — Brazilian pay TV operator TVA announced a debt restructuring, the pending sales of its remaining programming assets and improving quarterly results at the Brazilian Pay TV and Telecom Assn. (ABTA) confab.

TVA will swap some of its $142 million in debt with the majority shareholder, media conglom Abril, whose holding currently stands at 62%. Once the swap is completed, TVA will have just $85.5 million in debt. The four partners in TVA — Disney, Chase Manhattan, Falcon Intl. and Hearst — will see their stakes reduced.

The restructuring is aimed at making TVA, the No. 2 MSO in Brazil with 17% of the pay TV market, more attractive to potential buyers. Abril has been trying to sell control of TVA since late 1998.

TVA is in talks with a foreign company for the sale of its wholly owned Eurochannel, a local web that features Euro films and series. It is also negotiating the sale of its 24% stake in HBO Brasil, which is the country’s second largest distributor of pay TV programming.

In second quarter results, TVA reported net revenue was up 8.5% to $27.8 million from $25.6 million in the first quarter. Its sub count rose to 326,246, up 5.4% from the end of 1999. Company officials highlighted that increase, given that sub growth was virtually flat in 1999, in large part due to the recession in Brazil that year.

Want to read more articles like this one? SUBSCRIBE TO VARIETY TODAY.
Post A Comment 0

Leave a Reply

No Comments

Comments are moderated. They may be edited for clarity and reprinting in whole or in part in Variety publications.

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

More TV News from Variety

Loading