State mulls Satmex sale

20 Jan 2006

The Mexican government has confirmed that it is considering selling its stake in bankrupt satellite operator Satmex, once the troubled company has completed its restructuring. The state holds a 23.5% stake in Satmex, which has been granted a second extension to make a financial restructuring proposal to its creditors earlier this month. The operator is thought to have defaulted on USD523 million of its total USD800 million debt since 2003. The original deadline for Satmex to present a financial restructuring package to US creditors was the end of October 2005, but this was pushed back until 10 January 2006. The New York bankruptcy court has now set a deadline of 27 April. The state has often clashed with fellow Satmex shareholders over the repayment of loans.