The creditors do not accept the proposal of MVS / Echostar, if these holders mantain the opposition the sale of the company will be imposible.   

A group representing more than 50% of guaranteed senior notes second priority of Satellites Mexicanos (Satmex) agrees not to accept the proposal to purchase the group consisting of MVS-Echostar, the dealer informed the Mexican satellite system.

If these holders will be impossible to maintain opposition made the sale of the company, as confirmed Satmex.

As a matter of Jose Otero, president of Signals Consulting Telecomm, those same bondholders opposed the investment to build the Satmex 7, worsening the position of the company due to an aging fleet that has no short-term replacements.

It found that in 2007 attempted a sale process with a minimum price of $ 500 million, which did not materialize because no participant offered more than that amount, so it is expected that a similar financial proposal is acceptable to all holders of notes.

"You could say that the process seems doomed to fail," said the specialist.

"It will be very difficult for the holders of notes change their position. This will result in two things: failure of a takeover attempt by EchoStar Satmex / MVS and the formulation of an alternative plan by the same bondholders to try to boost the construction and commissioning in orbit replacement Satmex Solidaridad 2 and 5, said Otero.

Consider that do not are doomed to see how the value of the company slows over the months and with a maturity of 63% of its debt in 2011.

Satmex admitted that the bid by $ 374 million made by the consortium would not be sufficient to repurchase the senior secured notes in circulation registered securities whose principal amount is about 424.25 million dollars.

The company is negotiating with creditors to convince them, but if the deadline for the dealership to negotiate the purchase of senior notes, total cash is not enough to purchase, then neither the repurchase or sale of company shares be achieved.

This period ends in about two or three weeks, said the satellite dealership.

"The position of holders of notes complicates the transaction because we have to consider that EchoStar would have to be undertaken in coming years to launch two satellites to replace Solidaridad 2 and Satmex 5," Otero said.

The EchoStar's purchase intention is conditional upon no later than March 16, 2010 the signing of a preliminary authorization to proceed with a manufacturer to build a replacement for Satmex 5 and no later than April 27, 2010 have to sign an agreement to manufacture the new satellite, said the president of Signals.

Carried out the transaction, EchoStar will pay about $ 300 million for a replacement Satmex 5, in addition to what is necessary for the construction and launch of Satmex 7, because it only has incurred an amount equal to the cost of design the manufacturer Loral.

Reference: El Universal, Mexico