DirecTV Latin America, LLC announced last week that the U.S. Bankruptcy Court in Wilmington, Delaware has approved the Disclosure Statement filed in connection with the Company's proposed Plan of Reorganization. With this approval, DirecTV Latin America remains on schedule to emerge from the Chapter 11 process in early 2004.
As previously reported, the Company filed for Chapter 11 in March 2003 in order to aggressively address its financial and operational challenges. The filing applied only to the U.S. entity and did not include any of the operating companies in Latin America and the Caribbean, which have continued regular operations.
At a hearing last week, Judge Peter J. Walsh ruled that the Company's Disclosure Statement contained adequate information for the purposes of soliciting creditor approval for the Plan. A confirmation hearing at which the Court will consider approval of the Plan has been scheduled for February 13, 2004.
By January 12, 2004, DirecTV Latin America will mail notice of the proposed confirmation hearing together with the Plan, the Disclosure Statement and ballots and begin the process of soliciting approvals for the Plan from qualified claim holders.
Assuming that the requisite approvals are received and the Court confirms the Plan under the current timetable, the Company presently expects to emerge from Chapter 11 by the end of February 2004.
