Pacifictel announces debt reduction strategy

17 May 2004

Troubled fixed line operator Pacifictel has launched an 18-month restructuring plan designed to tackle its estimated USD200 million of debt. The state-run telco reported total debts of USD141 million in January this year, but a review discovered additional liabilities of USD60 million, forcing it to revise its budget for 2004. The five-point plan includes measures to: eliminate USD60 million of debt through staff rationalisation, procurement and real estate budget reductions; cut USD7 million from the services budget; activate 70,000 inactive lines to realise income of USD8 million; recover outstanding bills worth USD49 million owed by international carriers such as Latin America Telecom, AT&T, Telefónica, Telecom Italia, Uniplex and JFJ Communications; and implement a corporate restructuring plan to eliminate the positions of regional vice presidents.

Ecuador, Pacifictel