AT&T Latin America (ATTL), a facilities-based provider of business communications in five Latin American countries, is continuing an ongoing restructuring process that may include a sale of the company or a reorganization under bankruptcy protection. The statement comes after this week’s announcement that AT&T will divest its equity stake in ATTL. AT&T has disclosed that it has entered into a non-binding letter of intent with Southern Cross Group, LLC, a telecommunications holding company, to sell 8,000,000 shares of Class A common stock of ATTL and 73,081,595 shares of Class B common stock of ATTL for $1,000.00 in a transaction within the next twelve months. ATTL said it currently provides services to over 140,000 total customers, including 5,400 data/Internet business customers and approximately 800 multi-national corporations.
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- AT&T Latin America operates a fiber network spanning 7,650 route km and an IP/ATM backbone reaching 17 major cities. The company has connected more than 7,300 corporate buildings to its advanced ATM/IP fiber optic network and has nearly 40,000 corporate offices on-net. It has activated more than 20,000 data/Internet ports serving over 5,300 business customers and continues to expand its service portfolio, which includes local telephony and long distance, data/Internet, web hosting and value added services.
- In November 2002, AT&T Latin America reported Q3 revenue of $39.9 million, a 1.7% increase from the same period in 2001 and a 4.9% percent decline from Q2 2002. Consolidated data/Internet services revenue increased 10.3% compared to the year-ago period to $24.7 million. Compared to Q2, consolidated data/Internet services revenue dropped 9.1% due primarily to foreign currency fluctuations. Voice services revenue totaled $15.2 million, a 9.8% decline compared to the year-ago period and a 2.8% increase compared to the second quarter. ATTL also announced an anticipated funding gap commencing in Q4 and running through 2003 of up to approximately $40 million, assuming continued access to its senior secured vendor financing facility. The company also reported that it was out of compliance with Q3 revenue targets under terms of its senior secured vendor financing facilities
- As of September 30, 2002, ATTL’s total debt amounted to $849.1 million versus $662.1 million as of December 31, 2001.
- In August 2002, AT&T Latin America announced a major restructuring to move it from a country-oriented model to a regional, customer-centric organization. The company will consolidate management functions to its new headquarters in Washington, D.C. It also planned to establish its regional service center in Chile to consolidate engineering, operations, customer care, IT and human resources.