|
 |
|
|
Issue #46 |
|||
Gilat Gets Approval of Debt Restructuring Plan by Principal CreditorsFMC Telecom Acquires Satellite Media Solutions (SMS)France Telecom Sells Its Eutelsat Stake to EurazeoSPACEHAB Reports $1.2 Million Profit for Second Quarter of Fiscal 2003 |
|||
|
|||
|
|
|
|
Gilat Gets Approval of Debt Restructuring Plan by Principal CreditorsGilat Satellite Networks has announced its bank lenders and the holders of its 4.25% Convertible Subordinated Notes due 2005 (the "Notes") voted to approve the Company's debt restructuring plan as previously announced and filed on November 14, 2002. The approval of the plan, allowing Gilat to restructure its principal debt obligations, including the Notes, is the final creditor approval required for the Company's debt restructuring process. Gilat expects to make a filing with the Israeli District Court in Tel Aviv to obtain the court's approval of the terms of the arrangement. "The approval of our debt restructuring plan by our principal creditors is a key ingredient to position Gilat for future growth," said Yoel Gat, Gilat's Chairman and CEO. "We have received overwhelming support from our banks and bondholders -- receiving the support of 91.9% of the number of bondholders who were represented and voted for the plan, representing 99.5% of the principal amount of bonds that voted at the bondholder meeting. With this support, we can move forward to execute our strategy with a significantly improved balance sheet and cost structure," he added. The plan of arrangement includes an offer by Gilat to issue a combination of 4.00% Convertible Notes due 2012 and its ordinary shares, par value NIS 0.01, in exchange for all the Notes and a portion of bank debt. As a result, Gilat expects to reduce its principal debt by approximately US $300 million. The plan of arrangement also includes the restructuring of the terms of its bank debt. The above plan significantly reduces the Company's financing costs. Gilat expects to close the process by mid-March 2003. FMC Telecom Acquires Satellite Media Solutions (SMS)FMC Telecom Inc. provides traditional satellite services such as Internet bandwidth, data and circuits, as well as a comprehensive package of professional services, equipment, and materials for turnkey telecommunications projects. The combined companies own six satellite earth stations worldwide, covering North America, Central and South America, the Caribbean, Europe, Middle East and North Africa. "While the industry has undergone some difficult times, companies are still looking for low cost methods of handling video, voice and data communications worldwide -- our competitive edge," said Frank Cassidy, CEO and founder of FMC Telecom. "Our private television network platforms will enable companies to offer customized and cost-effective educational, marketing or advertising content to customers, employees or prospects, something which has not been available through the large satellite providers," he added. Ed Berkhof, former president of SMS, will assume the role of Chief Operating Officer for FMC Telecom and will also head up the SMS division. He will be responsible for developing private television networks for companies in the distance learning, remote advertising and in-house promotion. Targeted industries include: retail, hospitality and Fortune 1000 corporations. Berkhof was a pioneer in the home satellite industry in 1979, designing cost effective satellite antennas. France Telecom Sells Its Eutelsat Stake to EurazeoThe sell-off of Eutelsat continued when France Telecom sold its 23% stake to Eurazeo for EUR447 million. France Telecom said it would reinvest between EUR68m and EUR74m to buy a 20% stake in the holding company for the Eutelsat shares. Eurazeo said it intends to be a long-term shareholder. "We intend to team up with other Eutelsat shareholders who share our views on how to develop the company," Eurazeo executive director Gilbert Saada said. Saada said Eurazeo will approach Lehman Brothers and Italian publishing house De Agostini, which indirectly hold 20.5 per cent and 11 per cent of Eutelsat, respectively. Eurazeo, Lehman and De Agostini could gain control of Eutelsat, which requires at least two-thirds of the company's equity, by partnering with the buyer of BT Group's 17.5-per-cent stake. The deal values Eutelsat at EUR1.93 billion, roughly six times last year's EBITDA. BT Group is the last of the four original large shareholders in Eutelsat and has also held informal talks concerning the sale of its Eutelsat stake. . SPACEHAB Reports $1.2 Million Profit for Second Quarter of Fiscal 2003Highlights from SPACEHAB’s 2Q: * Revenues of $28.1 million up from $27.7m for 2Q fiscal ‘02 * Earnings of $1.2 million ($0.09 per diluted share) up from $700k in 2Q fiscal ‘02 * Operating income up 27% from year-ago second quarter * Gross profit of $5.3m down from $7.3m for 2Q fiscal ‘02 * Order backlog at $173 million "Our management team is dedicated to growing our operations, providing quality service, and financial recovery -- all of which are on track and improving as reflected in today's financial report," said Dr. Shelley A. Harrison, Chairman and Chief Executive Officer of SPACEHAB. "With a large backlog of over $173 million, outstanding customer support provided by our business units, and a commitment to our stakeholders, we are delivering on our pledge of strengthening our business," said Dr. Harrison. |
|
|||
|
Home | Industry | Internet & Broadband | People | Events Subscribe | Unsubscribe | Browse or Search Archives | Advertise on SKYBroadband Please send Press Releases, Product Releases, Financial News © 2003 by SKYBroadband. All Rights Reserved.
|
|||
Financial