Alestra’s owners increase offer to creditors

24 Jun 2003

US telco AT&T and Mexican investment vehicle Onexa, owners of financially troubled Mexican long-distance operator Alestra, have offered the company’s creditors USD100 million to buy back some of its debt as part of a restructuring plan. AT&T, which owns 49% of Alestra, has said it will also provide its subsidiary with a separate USD8.5 million payment following its restructuring. Alestra reported total liabilities of around USD750 million at the end of March 2003 and has said it will pursue bankruptcy protection in the US if its creditors turn down the latest offer from AT&T and Onexa. The offer needs the approval of 90% of Alestra’s creditors in order to be accepted.