spacetoday.net: DirecTV subsidiary considers bankruptcy

DirecTV subsidiary considers bankruptcy

Posted: Thu, Jan 9, 2003, 7:14 AM ET (1214 GMT)
The Latin American subsidiary of satellite TV broadcaster DirecTV said Wednesday that it may restructure or even file for bankruptcy protection. DirecTV Latin America officials said that economic turmoil in Brazil, Argentina, and other nations in the region has caused a loss of subscribers and revenue for the company. Devaluation of local currencies has also hurt the company in some of its dollar-denominated contracts. If it cannot restructure those contracts, the Miami-based company may file for Chapter 11 bankruptcy protection. PanAmSat, which provides DirecTV Latin America with satellite services, said that DirecTV Latin America represents its biggest risk to future revenue, as the company accounts for over half of PanAmSat's $1.06 billion in future at-risk revenue.