DIRECTV Latin America Files Chapter 11 ReOrg Plan

DIRECTV Latin America filed a proposed Plan of Reorganization and Disclosure Statement with the its U.S. bankruptcy court. The plan reflects an agreement reached between DIRECTV Latin America, its majority owner, Hughes Electronics Corporation, and the official committee of unsecured creditors Under the plan, Hughes will receive more than 80% percent of the reorganized company's equity upon its emergence from Chapter 11 in consideration of its allowed claim for debtor-in-possession financing, as well as for assets to be contributed to the reorganized company and certain other claims. The company hopes to emerge from the Chapter 11 process in early 2004.


In its five year business plan, DIRECTV Latin America projects that its region-wide subscriber base will increase from approximately 1.5 million subscribers at the end of 2003 to 3 million at the end of 2008. The business plan also projects that the company will begin to generate positive cash flow in 2005.
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