2014

Satmex Emerges from U.S. Bankruptcy Case and Condition to Convenio Concursal Satisfied

    MEXICO CITY, Dec. 1 /PRNewswire/ -- In fewer than four months after
 commencing its pre-negotiated U.S. bankruptcy, Satelites Mexicanos, S.A. de
 C.V. ("Satmex" or the "Company"), Mexico's leading satellite service
 provider, today announced that on November 30, 2006 it officially concluded
 its reorganization efforts and emerged from its U.S. bankruptcy case. The
 Company consummated its U.S. chapter 11 plan of reorganization, which was
 confirmed by the United States Bankruptcy Court for the Southern District
 of New York by order dated October 26, 2006, and implemented the
 restructuring approved in Satmex's Mexican Concurso Mercantil proceeding by
 the Concurso Plan Order issued on July 14, 2006.
     Reorganized Capital Structure
     In accordance with the terms of the restructuring, the holders of
 Satmex's former U.S. $203.4 million of Floating Rate Notes received, in
 full satisfaction of the obligations due under such notes, new First
 Priority Senior Secured Notes due in 2011 in the amount of approximately
 U.S. $238.2 million with a quarterly coupon of LIBOR + 875 basis points.
 The new First Priority Senior Secured Notes are callable at a price of 103
 in year 1, 102 in year 2, 101 in year 3 and at par (plus accrued interest)
 thereafter; have a first priority security interest in all of Satmex's
 assets; and benefit from cash sweep prepayments on excess cash balances
 over U.S. $5 million. The CUSIP number for the First Priority Senior
 Secured Notes is 803895AE1.
     Holders of Satmex's former U.S. $320 million of High Yield Bonds
 received, in full satisfaction of $140 million of the obligations due under
 such bonds, including all accrued interest, new Second Priority Senior
 Secured Notes due 2013 in the principal amount of U.S. $140,000,000. The
 new Second Priority Senior Secured Notes due 2013 have a quarterly coupon
 of 10.125% all-in, with 0.0% cash payment in year 1 with the balance
 paid-in-kind, 2.0% cash payment through year five, with the balance
 paid-in-kind, with the coupon paid wholly in cash in years 6-7. The Notes
 are callable at par throughout their life; have a second lien on Satmex's
 assets junior in priority, operation and effect to the security interests
 of the First Priority Senior Secured Notes; and after the full payment of
 the First Priority Senior Secured Notes, cash sweep prepayment on excess
 cash balances over U.S. $5 million. The CUSIP number for the Second
 Priority Senior Secured Notes is 803895AF8.
     Further, holders of the High Yield Bonds received, in exchange for
 capitalization of the balance of their claim of approximately U.S. $274
 million in principal and unpaid interest, 78 percent of the economic
 interest in the equity of Reorganized Satmex and 43 percent of the voting
 shares, comprised of 7,166,667 Series B shares and 29,395,833 Series N
 shares. The shares have been deposited in a trust and bondholders have been
 issued Units representing their interest in the trust based on 1 Unit
 issued for each U.S. $1,000 of face amount of the old 10 1/8% Notes due
 2004. Each Unit represents a proportional interest in approximately 22.396
 Series B shares and 91.862 Series N shares. A Global Trust Certificate
 representing the Units has been issued to the Depository Trust Corporation,
 and the CUSIP number of the Units is L2399K107.
     The remaining economic equity of Reorganized Satmex is held by Satmex's
 current shareholders, 2 percent by Principia and Loral, and 20 percent by
 the Mexican Government, directly and through Servicios Corporativos
 Satelitales, S.A. de C.V. ("Servicios"). The Mexican Government will own
 voting shares in Reorganized Satmex representing 10% and the rights to
 proceed from shares representing an additional 45%. Reorganized Satmex has
 a total of 9,166,667 Series A shares, 7,500,001 Series B Shares, and
 30,208,331 Series N shares.
     Reorganized Satmex Board of Directors
     Reorganized Satmex's Board of Directors consists of Luis Rebollar
 Corona, former Chairman and CEO of Grupo Sidek and Grupo Situr, Sergio M.
 Autrey Maza, Satmex's former Chairman of the Board and interim CEO, Vicente
 Ariztegui Andreve, President and founding partner of Grupo Arizan, S.A. de
 C.V., Nexxtrade, S.A. de C.V. and Marmiitalia, S.A. de C.V., Alberto Mulas
 Alonso, founding partner of Cresce Consultores, S.C., Thomas S. Heather, a
 partner in the Mexico City office of White & Case, LLP and the Conciliador
 in the Company's former Concurso Mercantil proceeding, Roberto Enrique
 Colliard Lopez, Director General and CEO of Pendulum, S. de R.L. de C.V.,
 and Robert L. Rauch, a Partner and Director of Research for Gramercy
 Advisors LLC. Erwin Starke, the current CEO of Secured Capital, S.A. de
 C.V., is chairing the Audit Committee for Reorganized Satmex.
 
 

SOURCE Satmex

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