Alestra completes debt restructuring

19 Nov 2003

Mexican long-distance operator Alestra yesterday emerged from its 18 month-long debt restructuring process, having reduced its indebtedness by USD200 million and received an injection of USD108.5 million from its two shareholders AT&T and Onexa. The telco has significantly reduced its financing costs through the restructuring and hopes that the process has put it in a much more robust stake of health. The company says it will continue providing long-distance and local telephony, internet and data services to customers, with a focus on data which it regards as having the highest potential for future success. Although Alestra believes that AT&T’s willingness to inject fresh funds into the company indicates its commitment to Mexico, analysts are more sceptical, hinting that it could be positioning the telco to make it a more attractive saleable asset.